Answer:
the following life insurance policies that provides the highest benefit for the lowest premium and is simply a pure death benefit policy would be A. Term
Principles are a. the obligations businesses have to maximize their positive impact and minimize their negative impact. b. mores, values, and customs that guide behavior in general. c. laws and regulations that guide behavior in the world of business. d. specific and pervasive boundaries for behavior that are universal and absolute. e. the mores, values, and customs that parents teach their children.
Answer:
b. mores, values, and customs that guide behavior in general.
Explanation:
It is correct to say that principles are the customs and values that guide behavior in general. It is through the principles of society that are acquired through cultural, political and social interactions, that the bases that will form the laws and legal norms of a society are formed.
It is also correct to affirm that each location has its own set of principles, so that they are not universal customs and values, nor encompassing only in the business world, but encompassing in all areas of human life.
3. Earl Shell owns his own Sno-Cone business and lives 30 miles from a beach resort. The sale of Sno-Cones is highly dependent upon his location and upon the weather. At the resort, he will profit $120 per day in fair weather, $10 per day in bad weather. At home, he will profit $70 in fair weather, $55 in bad weather. Assume that on any particular day, the weather service suggests a 40% chance of foul weather. (1) Construct Earl's decision tree. (2) What decision is recommended by the expected value criterion
Answer:
1) Earl has two options:
sell at the beach
good weather results in $120 profit (60% chance = $72)
bad weather results in $10 profit (40% chance = $4)
sell at home
good weather results in $70 profit (60% chance = $42)
bad weather results in $40 profit (40% chance = $16)
the expected value of selling at the beach = $76
the expected value of selling at home = $58
2) Earl should go to the beach.
Ketchup is a complement (as well as a condiment) for hot dogs. If the price of hot dogs rises, the quantity of hot dogs demanded ____________, which _________ the demand for ketchup. Because of the change in the equilibrium quantity of ketchup, the demand for tomatoes by ketchup producers ___________, causing the equilibrium price of tomatoes to___________. This means producers of tomato juice face__________ input prices, and the supply curve for tomato juice ____________). The resulting ____________ in the price of tomato juice causes people to substitute (away from tomato juice and toward orange juice/away from orange juice and toward tomato juice), so the demand for orange juice ________.
Answer:
Falls; lowers; falls; decrease; lower; increases; fall; away from orange juice and toward; fall.
Explanation:
In Economics, there are primarily two (2) factors which affect the availability and the price at which goods and services are sold or provided, these are demand and supply.
The law of demand states that, the higher the demand for goods and services, the higher the price it would be sold all things being equal. On the other hand, law of supply states that the higher the price of goods and services, the lower the supply.
Generally, consumers would like to be buy a product as its price falls or become inexpensive.
For substitute or complement products (goods), the price elasticity of demand is always positive because the demand of a product increases when the price of its close substitute (alternative) increases.
In this scenario, Ketchup is a complement (as well as a condiment) for hot dogs. If the price of hot dogs rises, the quantity of hot dogs demanded falls, which lowers the demand for ketchup. Because of the change in the equilibrium quantity of ketchup, the demand for tomatoes by ketchup producers falls, causing the equilibrium price of tomatoes to decrease. This means producers of tomato juice face lower input prices, and the supply curve for tomato juice increases. The resulting fall in the price of tomato juice causes people to substitute away from orange juice and toward tomato juice, so the demand for orange juice falls.
A national restoration contractor has $5 million to invest in new software to become more efficient in writing estimates and reducing errors, increasing net profits for the company. There are three products under consideration, each with a cost of $5 million to implement across the company. Which product should be purchased
Answer:
Product B
Explanation:
We are informed about A national restoration contractor who has has $5 million to invest in new software to become more efficient in writing estimates and reducing errors, increasing net profits for the company. There are three products under consideration, each with a cost of $5 million to implement across the company. In this case The product he should purchased is Product B
Indiana Co. began a construction project in 2018 with a contract price of $160 million to be received when the project is completed in 2020. During 2018, Indiana incurred $39 million of costs and estimates an additional $83 million of costs to complete the project. Indiana recognizes revenue over time and for this project recognizes revenue over time according to the percentage of the project that has been completed.
A. Recognized no gross profit or loss on the project in 2018.
B. Recognized $12.37 million gross profit on the project in 2018.
C. Recognized $78.00 million loss on the project in 2018.
D. Recognized $39.00 million loss on the project in 2018.
Answer:
Recognized $12.47 million gross profit on the project in 2018.
Explanation:
Total Contract price $160
Total cost incurred during the year 2018 $39
Additional cost $83
Total cost $122
Total profit $38
% cost during the year = (39/122*100) = 31.9672131147541% = 31.97%
Revenue recognized on 2018 = 39*31.97% = $12.4683 = $12.47
Mohawk Machining, which uses a process-costing system, adds material at the beginning of production and incurs conversion cost evenly throughout manufacturing. The following selected information was taken from the company's accounting records: Total equivalent units of materials: 8,000 Total equivalent units of conversion: 7,400 Units started and completed during the period: 6,500 On the basis of this information, the ending work-in-process inventory's stage of completion is:_____.
A- 80%.
B- 70%.
C- 60%. - 40%.
D- some other percentage not listed above.
Answer:
C. 60%
Explanation:
Equivalent unit of Materials = 8,000.00
Equivalent unit of Conversion = 7,400.00
Units started and completed = 6,500.00
Since Materials are entered in the beginning it means that out of 8000 Units of Materials 6500 units are in Units started and completed and remaining 1500 Units are in Closing inventory. It also means that 1500 units are in Closing Inventory of Conversion and Equivalent production of conversion part of 1500 Units are 900 Units (7400-6500).
Let % Completion be x
X% of 1500 = 900
X = 900*100/1500
X = 60%.
Tax rate 21% Estimated tax payment 21,000 Investment cost and ending fair values for 20X1 and 20X2: 20X1 20X2 Cost 100,000 100,000 Fair value 110,000 134,000 Total gain 10,000 34,000 20X1 income statement information: Sales 1,670,200 Expenses 1,536,600 Assuming the investement is long-term, what is the accumulated other comprehensive income on the 20X2 balance sheet?
Answer:
34,000
Explanation:
The computation of the accumulated other comprehensive income on the 20X2 balance sheet is shown below:
In the given situation , since the investment is a long term and it would also be classified as an available for securities So if there is any unrealized gain or loss so the same would be reported
As we can see there is a gain of 34,000 in 20X2 so the same is to be shown in the accumulated other comprehensive income
5 points eBookPrintItem 3 At the end of last year, the company's assets totaled $870,000 and its liabilities totaled $745,000. During the current year, the company's total assets increased by $59,000 and its total liabilities increased by $24,500. At the end of the current year, stockholders' equity was:
Answer:
$159,500
Explanation:
The computation of the ending stockholder equity at the current year is given below:
As we know that
Total assets = Total liabilities + stockholder equity
Now both are increased by some amount, so the ending stockholder equity at the current year is
= ($870,000 + $59,000) - ($745,000 + $24,500)
= ($929,000) - ($769,500)
= $159,500
Which situation is most likely to result in a government having a budget
surplus for a year?
Please help !!!!
Answer:tylko odpowiedź D
Explanation:
*80 points* Introduce a blog owner (a company, organization, or school). Analyze a professional blog owned by a company or by a not-for-profit organization. Professional blogs are different from personal blogs in many ways. You'll compare these two types of blogs.
Compare and contrast the professional blog that you have chosen with the personal blog on the following dimensions:
Topic: What is the topic of the professional blog? How is it different from the topic of the personal blog?
Design: How do the designs of the two blogs (layout, font, color theme, images, styles, and so on) vary?
Structure and Content: Explain how the structure and the presentation of data and content in the two blogs vary?
Audience: (followers/subscribers) Who is the target audience for each blog? What is the targeted demographics for each blog? What kind of audience does each blog attract? Is the audience different from the intended audience? How is the audience for your personal blog different from the audience for the professional blog?
Other Social Media Links: Which other types of social media are linked to each blog? How do they help drive more traffic to the blog? How are the social media links in the nonpersonal blog different from the links in your personal blog?
Evaluation: Summarize how the blogs are different.
Answer: A blog (a truncation of "weblog") is a discussion or informational website published on the ... However, blog owners or authors often moderate and filter online comments to remove hate speech or other offensive content. ... by inventing new ways to navigate through huge amounts of information present in the blogosphere
Explanation: i hope that helps you!
You are considering an investment in Crew Cut, Inc. and want to evaluate the firm's free cash flow. From the income statement, you see that Crew Cut earned an EBIT of $23.18 million, paid taxes of $3.82 million, and its depreciation expense was $7.82 million. Crew Cut's gross fixed assets increased by $10.18 million from 2017 to 2018. The firm's current assets increased by $6.18 million and spontaneous current liabilities increased by $3.82 million. What is Crew Cut's operating cash flow, investment in operating capital and free cash flow for 2018, respectively in millions
Answer:
See below
Explanation:
•Crew Cut's operating cash flow was;
Operating cash flow = EBIT - Taxes + Depreciation
= $23.18 million - $3.82 million + $7.82 million
= $27.18 million
• Investment in operating capital for 2018
Investment in operating capital = Change in gross fixed assets + Change in net working capital
= $10.18 million + ($6.18 million - $3.82 million)
= $10.18 million + $2.36 million
= $12.54 million
• Free cash flow for 2018
Free cash flow = Operating cash flow - Investment in operating capital
= $27.18 million - $12.54 million
= $14.64 million
Multinational, Inc. has recently closed several of plants in the United States and is planning to move the work of those plants to facilities in developing countries in the Pacific Rim. The employees of Multinational, Inc. have never been unionized. Zachary Bowman thinks it would be a good idea for him and his fellow employees to unionize. What is the first step that Mr. Bowman should take to begin the unionization process
Answer:
Build an organization committee
Explanation:
In simple words, the first step of unionization will be forming a committee if the union which will give it a face and formal identity. It will help to gather the individual, who are in favor of the notion in subject, in a more efficient and effective manner.
The formation of committee can also gather the ideas and problems and can also act legally.
2.A company began 2019 with retained earnings of $23.45 million. During the year, it paid four quarterly dividends of 0.25 per share to common stockholders holding 1 million shares. Preferred stockholders, holding 0.5 million shares, were paid four quarterly dividends of 0.50 per share. The firm had a net profit after taxes of 2.18 million. What is the value of the retained earnings balance at the end of the year
Answer: $23.63 million
Explanation:
First and foremost, we can calculate the quarterly common stockholder dividend which will be:
= $0.25 × 1 Million
= $0.25 million
Then, the annual dividend to the common stockholders will be:
= $0.25 million × 4
= $1 million
The quarterly preferred stockholder dividend will be calculated as:
= $0.50 × 0.50 Million
= $0.25 million
We would then multiply $0.25 million by 4 to get the annual dividend attributable to the preferred stockholders which will be:
= $0.25 million × 4
= $1 Million
Total Dividend would then be:
= Annual dividend to common stockholders + Annual dividend to preferred stockholder
= $1 Million + $1 Million
= $2 Million
The value of the retained earnings balance at the end of the year will then be:
= Retained Earnings at the beginning of the year + Net Income – Dividend
= $23.45 + $2.18 - $2.00
= $23.63 million
International businesses need to understand the nature of the globalization debate and observe how their own practices may act in support of, or against globalization.
a. True
b. False
Answer:
true
Explanation:
The CEO of a national restaurant chain wants to create a new and improved performance appraisal system. She meets with the vice president of HR to ask her to design the new system. How can the vice president of HR use job analysis in this situation
Answer:
It can be used to identify the appropriate criteria for evaluating employee job performance.
It can be used to design the format and rating format for a performance appraisal.
Explanation:
Since in the question it is mentioned that she meets with the vice present in order to design the new system so here the vice present could do the job analysis as follows;
1. There should be appropriate criteria for analysing and evaluating the job performance of the employees
2. Also the format should be designed and the rating format for the performance appraisal
These two things should be considered
Under IAS 12, current and deferred taxes are measured on the basis of: rates prevailing when the entity provided goods or services. rates that have been enacted or substantively enacted by the balance sheet date. rates anticipated when temporary differences reverse. current rates and rates anticipated when temporary differences reverse.
Answer:
Under IAS 12, current and deferred taxes are measured on the basis of:
rates anticipated when temporary differences reverse.
Explanation:
According to IAS 12, the measurement of the deferred tax assets and deferred tax liabilities are based on the expected tax rate when the underlying asset or liability is recovered or settled. Deferred taxes arise from the temporary or timing differences between the carrying amount of an asset or liability in the financial statement and the tax base.
Healthy competition among businesses is good for consumers.
True or False
I say true because it seems like most likely answer.
Suppose a city block was going to be used for a parking lot in both New York City and a small town. The opportunity cost would be multiple choice 2 lower in New York City because the alternative uses of the city block are more varied. lower in a small city because the alternative uses of the city block are more varied. greater in New York City because the alternative uses of the city block are more valuable. greater in a small city because the alternative uses of the city block are more valuable.
Answer:
c. The opportunity cost would be greater in New York City because the alternative uses of the block are more valuable.
Explanation:
Value of piece of land would be much higher in New York City in comparison to a small town.
This means that if a piece of land is used for parking lot in the New York City then the alternative use of such land would be more valuable in comparison to the utilization of similar piece of land in a small town.
Higher the value of alternative uses, higher would be the opportunity cost. So, the opportunity cost would be greater in New York City because the alternative uses of the block are more valuable.
During January, Year 2, Geo entered into the following transactions: Paid $728 on account for utilities that were used during December, Year 1. Purchased $488 of supplies for cash. Signed a rental agreement for office space and paid $6,100 in advance for six months of rent beginning February 1, Year 2. Purchased $21,000 of new equipment, signing a promissory note. Provided $32,500 of services. $16,000 was received in cash and $16,500 was provided on credit. Paid workers $7,400 for work done in January. Required: Prepare journal entries for each of the following January activities, and post results to the relevant T-accounts. Compute the ending balance of each T-account. Beginning balances have been entered.
Answer:
Geo
1. Journal Entries:
1. Debit Utilities Payable $728
Credit Cash $728
To record the payment of utilities on account.
2. Debit Supplies $488
Credit Cash $488
To record the purchase of supplies for cash.
3. Debit Prepaid Rent $6,100
Credit Cash $6,100
To record the prepayment of rent for 6 six months.
4. Debit Equipment $21,000
Credit Note Payable $21,000
To record the purchase of equipment on account.
5. Debit Cash $16,000
Debit Accounts Receivable $16,500
Credit Services Revenue $32,500
To record the rendering of services for cash and on account.
6. Debit Salaries Expense $7,400
Credit Cash $7,400
To record the payment of salaries for January.
2. T-accounts:
Utilities Payable
Accounts Titles Debit Credit
Cash $728
Cash
Accounts Titles Debit Credit
Utilities payable $728
Supplies 488
Prepaid Rent 6,100
Service Revenue $16,000
Salaries Expense 7,400
Supplies
Accounts Titles Debit Credit
Cash $488
Prepaid Rent
Accounts Titles Debit Credit
Cash $6,100
Equipment
Accounts Titles Debit Credit
Note Payable $21,000
Note Payable
Accounts Titles Debit Credit
Equipment $21,000
Accounts Receivable
Accounts Titles Debit Credit
Service Revenue $16,500
Services Revenue
Accounts Titles Debit Credit
Cash $16,000
Accounts Receivable 16,500
Salaries Expense
Accounts Titles Debit Credit
Cash $7,400
Explanation:
Since the beginning balances were not supplied, the T-accounts are not balanced at the end of the period. Journal entries were prepared to record the daily business transactions for the first time in the accounting system. The entries showed the accounts to be debited and credited respectively.
When sales increase by 3%, which of the following should also increase by 3% in a merchandising company?
A. Variable cost.
B. Fixed cost.
C. Gross margin.
D. Contribution margin.
E. Net operating income.
When sales increase by 13%, which of the following should increase by more than 13% in a merchandizing company?
A. Variable cost.
B. Fixed cost.
C. Gross margin.
D. Contribution margin.
E. Net operating income.
Answer:
Part 1
C. Gross margin
E. Net operating income
Part 2
C. Gross margin
E. Net operating income
Explanation:
A merchandizing company bought goods for resale rather than manufacturing and selling as seen with manufacturing companies.
The items which vary with sales in a merchandizing company are Gross Margin and Net Operating income. Such are the items that will increase with an increase in Sales.
Tootsie Roll Industries is engaged in the manufacture and sale of candy. Major products include Tootsie Roll, Tootsie Roll Pops, Tootsie Pop Drops, Tootsie Flavor Rolls, Charms, and Blow-Pop lollipops. The following items were listed on Tootsie Roll's recent income statement and balance sheet. Select each item from the balance sheet as an asset (A), liability (L), or shareholders' equity (SE) item and each item from the income statement as a revenue (R) or expense (E) item.
a. Bank loans
b. Selling, marketing, and administrative expenses
c. Accounts payable
d. Dividends payable
e. Retained earnings
f. Cash and cash equivalents
g. Accounts receivable
h. Provision for income taxes
i. Product cost of goods sold
j. Machinery and equipment
k. Net product sales
l. Inventories
m. Trademarks
n. Buildings
o. Land
p. Income taxes payable
q. Rental and royalty costs
r. Investments (in other companies)
Answer:
Balance Sheet
a. Bank loans ( L )
c. Accounts payable ( L )
d. Dividends payable ( L )
e. Retained earnings ( SE )
f. Cash and cash equivalents ( A )
g. Accounts receivable ( A)
h. Provision for income taxes ( L )
j. Machinery and equipment ( A )
l. Inventories ( A )
m. Trademarks ( A )
n. Buildings ( A )
o. Land ( A )
p. Income taxes payable ( L )
r. Investments (in other companies) ( A )
Income Statement
b. Selling, marketing, and administrative expenses ( E )
i. Product cost of goods sold ( E )
k. Net product sales ( R )
q. Rental and royalty costs ( E )
Explanation:
All the Assets, Liabilities, and Shareholder's equity are part of the balance sheet so, these are classified under the Balance sheet as A, L, and SE respectively.
Revenue and Expesne are incorporated in the income statement to calculate the net income for the period. Both of these are classified under the income statement as R and E respectively.
All those items over which the business has control and the right to receive an economic benefit from it are defined as assets. e.g Land
All the item which represents the obligation for the business to be fulfilled in future is classified as liabilities. e.g Bank loan
All the items associated with the shareholders of the company are classified as shareholder's equity. e.g Retained Earnings.
All the items which show the income for the flow of the economic benefit for the business are considered as Revenue. e.g Net sales.
All the items show the costs incurred to receive the benefit for the business are classified as the expense. e.g Rental expenses
Classify each of the following costs as a direct cost or an indirect cost, assuming that the cost object is the Juniors Department (clothing and accessories for teenage and young women) in the Stow Kohl's department store. (Kohl's is a chain of department stores and has stores located across the United States.) a. Juniors Department sales clerks ▼ b. Cost of Juniors clothing c. Cost of hangers used to display the clothing in the store d. Electricity for the building e. Cost of radio advertising for the store f. Juniors clothing buyers' salaries (these buyers buy for all the Juniors Departments of Kohl's stores)
Answer:
The correct answers are:
a - Direct cost
b - direct cost
c - indirect cost
d - indirect cost
e - indirect cost
f - direct cost
Explanation:
On the one hand, the term of "direct cost" in the field of management and accounting refers to the type of cost that is directly associated with the production of a good in particular. So that basically means that a direct cost of a product is something that was extremely necessary to use in the production of it or in the other case it could not have been made.
On the other hand, the term of "indirect cost" refers to the whole opposite concept, meaning that the indirect cost will be those who can not be directly associated with a product or its production but instead it is implicated actually with a whole other activites in the company, such is the case of the electricity of the building.
According to the video, what challenges do Clergy face? Check all that apply.
angry congregations
stubborn advisors
difficult paperwork
demands on time and energy
long hours
Answer:
4,5
Explanation:
Answer:
D: Demands on time and energy
E: Long hours
Explanation:
I got it right on my assignment for the Career Explorations.
A Student table and an Address table contain one linked record. What kind of table relationship do these tables
demonstrate?
a. one-to-one
b. one-to-many
c. many-to-many
d. many-to-none
Answer:
A.)
Explanation:
hope this helps
The bank has a 10% reserve requirement. Record each transaction in the category it belongs in. Carry forward the information from the previous transaction. The categories you will use are those included below.
Eli has $5,000 in cash and decides that he needs to open a checking account at Main Street Bank.
Assets Liabilities
Required Reserves - 500
Excess Reserves -
Loans - 4500 Checkable Deposits - 5000
Answer:
ASSETS
Required Reserves $500
Excess Reserves $5,000
Loans $5,000
LIABILITIES
Checkable Deposits $4,500
Explanation:
Based on the information given in a situation where Eli has the amount of $5,000 in cash in which he decided that he will needs to open a checking account which means that the category to Record this transaction will be:
ASSETS
Required Reserves $500
(10% reserve requirement *$5,000 Cash)
Excess Reserves $5,000
Loans $5,000
LIABILITIES
Checkable Deposits $4,500
[$5,000-(10% reserve requirement *$5,000 Cash)]
($5,000-$500)
=$4,500
The doctrine of state decisis is a
Analysis of a company's financial statements: Below are simplified versions of the balance sheet and income statement for Toys by Tom, Inc. Use this information to answer the following question. A 15% increase in inventory turns for Toys by Tom, Inc. would bring this ratio to ____, suggesting ________ in ________.
Answer: 3.9 times; an improvement; efficiency
Explanation:
Inventory turns is calculated by the formula:
= COGS / Inventory
= 8.4 / 2.50
= 3.36
Increased by 15%:
= 3.36 * (1 + 15%)
= 3.864
= 3.9 times
Inventory turns is used to show how often the inventory was sold in a period. A higher ratio therefore presents increased efficiency and is desired.
Batch Co. employs knowledge workers and is finding that its employees are retiring closer to age 75 than to age 65. As a result, they recently amended their defined benefit pension plan such that benefits will begin at age 72, with certain exceptions for those employees demonstrating an earlier need, instead of at age 60. Batch Co. has been able to measure the actuarial present value of this amendment, which is the change in the projected benefit obligation (PBO) that results from the change. How will this affect pension expense in current and future periods?
Answer:
It will decrease prior service cost and, as prior service cost is amortized, will decrease pension expense.
Explanation:
In the given if there is any change in the projected benefit obligation so the pension expense would impact in the present and future period by reducing the service cost that incurred before also the service cost that incurred before would be amortized that ultimately reduce the pension expense
Therefore the first option is correct
Sweet Shop Co. is a chain of candy stores that has been in operation for the past ten years. For each of the following transactions give the accounting effects of the adjustments required. (Enter any decreases to account balances with a minus sign.)
a. Ordered and received $12,300 worth of cotton candy machines from Candy Makers Inc., which Sweet Shop Co. will pay for in 45 days.
b. Sent a check for $6,300 to Candy Makers Inc. for the cotton candy machines from (a).
c. Received $700 from customers who bought candy on account in previous months.
d. To help raise funds for store upgrades estimated to cost $36,500, Sweet Shop Co. issued 1,300 common shares for $25 each to existing stockholders.
e. Sweet Shop Co. bought ice cream trucks for $66,000 total, paying $13,000 cash and signing a long-term note for $53,000.
Answer:
Sweet Shop Co.
Accounting Effects of Transactions:
a. Ordered and received $12,300 worth of cotton candy machines from Candy Makers Inc., which Sweet Shop Co. will pay for in 45 days.
Assets (Equipment +$12,300) = Liabilities (Accounts Payable +$12,300) + Equity
b. Sent a check for $6,300 to Candy Makers Inc. for the cotton candy machines from (a).
Assets (Cash -$6,300) = Liabilities (Accounts payable -$6,300) + Equity
c. Received $700 from customers who bought candy on account in previous months.
Assets (Cash +$700) = Liabilities + Equity (Retained Earnings +$700)
d. To help raise funds for store upgrades estimated to cost $36,500, Sweet Shop Co. issued 1,300 common shares for $25 each to existing stockholders.
Assets (Cash +$32,500) = Liabilities + Equity (Common stock +$32,500)
e. Sweet Shop Co. bought ice cream trucks for $66,000 total, paying $13,000 cash and signing a long-term note for $53,000.
Assets (Trucks +$66,000; Cash -$13,000) = Liabilities (Long-term note payable +$53,000) + Equity
Explanation:
The accounting effects of transactions show how the accounting equation will always remain in balance given each transaction's double-entry effects.
Assume (1) estimated fixed manufacturing overhead for the coming period of $204,000, (2) estimated variable manufacturing overhead of $2.00 per direct labor hour, (3) actual manufacturing overhead for the period of $320,000, (4) actual direct labor-hours worked of 54,000 hours, and (5) estimated direct labor-hours to be worked in the coming period of 55,000 hours. The amount of overhead applied to production during the period is closest to:
Answer:
Allocated MOH= $308,340
Explanation:
First, we need to calculate the predetermined overhead rate:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= (204,000/55,000) + 2
Predetermined manufacturing overhead rate= $5.71 per direct labor hour
Now, we can allocate overhead based on actual hours:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 5.71*54,000
Allocated MOH= $308,340