Response:
Allocated MOH= $274,320
Clarification:
Providing the following details:
The budgeted factory overhead was $266,400, while the expected machine-hours amounted to 18,500. The actual machine-hours totaled 19,050.
Initially, we must determine the estimated rate for manufacturing overhead. We can then allocate the overhead accordingly.
To find the estimated overhead rate for manufacturing, we should employ the following equation:
Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Estimated manufacturing overhead rate= 266,400/18,500= $14.4 per machine-hour.
Now we can proceed to allocate the overhead:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 14.4*19,050= $274,320
Answer:
2.33; the demand for movies is elastic
Explanation:
Below is the calculation for price elasticity of demand:
= (change in quantity demanded ÷ average of quantity demanded) ÷ (percentage change in price ÷ average of price)
Here, the change in quantity demanded is defined as
= Q2 - Q1
= 30 - 15
= 15
The average quantity demanded is
= (30 + 15) ÷ 2
= 22.50
The change in price is computed as
= P2 - P1
= $8 - $6
= $2
And the average price is
= ($8 + $6) ÷ 2
= 7
Thus, after computing, the result for price elasticity of demand is 2.33
As we were not instructed on the method for calculation, the mid-point formula was utilized.
From this calculation, we deduce that the demand for movies is indeed elastic.
Answer:
Cost of the new machine:
= Price of new machine - Trade allowance + Market value of old machine
= $16,000 - $9,000 + $6,000
= $13,000
Consequently, the journal entry would be recorded as follows:
New Machine Cost A/c Dr. $13,000
Accumulated Depreciation (Book Value) A/c Dr. $4,000
Loss from machine exchange A/c Dr. $2,000
To Old Machine (Book Value) $12,000
To Cash (16,000 - 9,000) $7,000
(To document the equipment exchange)
a. $20,000. b. $3,000. The cost for an item of Property, Plant, and Equipment encompasses the purchase price and any expenses related to making the asset operational as intended by management. To calculate the car's expense: Purchase Price $19,000, Less Trade Discount $1,000, leading to a Net of $18,000, plus an extra $2,000 for a luxe interior brings the Total Cost to $20,000. Regarding depreciation, using the straight-line method, the fixed expense amortized yearly from the cost is determined by the equation (Cost - Residual Value) / Estimated Useful Life, which yields ($20,000 - $5,000) / 5 = $3,000 annually.
Answer:
Positive ROI
Explanation:
Investing in education is often regarded as one of the best decisions someone can make. Although it's challenging, it holds the potential to enhance one's life and future prospects.
In this instance, Luis utilized funds to obtain a certificate for air conditioning repair. His study lasted for six months, likely culminating in a certification exam. Following his success, he incurred debt, which is not ideal. However, the silver lining is that Luis now enjoys a significantly higher income. His improved salary enables him to repay his loan within two years, which is quite brief. Consider how remarkable it would be to settle your college debts in merely two years, compared to an average of twenty years.
