Gabriella strongly prefers a specific brand of gourmet coffee. Since there is only one store in her area that sells her brand, s

Question not complete

Direct Labour Cost is missing

Direct Labor Cost ----- $50,000.00 $270,000.00

Answer:

a.

Overhead Rate (Cutting Department) = $5.5 per machine hour = $5.5 per machine hour

Overhead Rate (Finishing Department) = $12.2 per labour hour

b. Total Manufacturing Cost = $644

c. Yes

Explanation:

a. To determine the predetermined overhead rate appropriate for each department.

Given

Cutting Department

The Cutting Department calculates its rate based on machine-hours

Manufacturing Overhead Costs = $264,000

Machine Hours = 48,000

Finishing Department

For the Finishing Department, the rate is calculated based on direct labor-hours.

Manufacturing Overhead Costs = $366,000

Direct Labour Cost = $270,000

Overhead Rate (Cutting Department) = Manufacturing Overhead Cost/Machine Hours

Overhead Rate (Cutting Department) = $264,000/48,000

Overhead Rate (Cutting Department) = $5.5 per machine hour

Overhead Rate (Finishing Department) = Manufacturing Overhead Cost/Machine Hours

Overhead Rate (Finishing Department) = $366,000/$270,000

Overhead Rate (Finishing Department) = 1.36

Overhead Rate (Finishing Department) = 136% direct labour cost

b.

The Cutting Department's rate is based on machine-hours

Given

Machine hours = 80 machine hours

Overhead Rate = $5.5 per machine hours ------ This was calculated

The Finishing Department's calculations rely on direct labor-hours.

Given

Direct Labour Cost = 150

Overhead Rate = 136% of labor cost ------ This was deduced

Overhead Applied (Cutting Department) = 80 * 5.5

Overhead Applied = 440

Overhead Applied (Finishing Department) = 136% * 150

Overhead Applied = $204

Total Overhead Applied = $440 + $204

Total = $644

c. Yes

If the business utilizes a company-wide overhead rate linked to direct labor cost and if jobs have increased machine hours paired with lower labor costs, they would incur less overhead expenses.

Answer: For an explanation, please refer to the explanation section

Explanation:

recording a journal entry for Patel Products selling a delivery van priced at $20,000 with accumulated depreciation totaling $18,000, while receiving $2,000 cash from the buyer, results in:

December 29, 2019

Account title----- Cash----------Debit $2,000

Account title----Accumulated Depreciation-----Debit $18,000.

Account title------Delivery Van ----Credit $20,000

The equipment's book value at the sale was $2,000, reflecting its original cost of $20,000 adjusted by the accrued depreciation of $18,000. Since Patel received the same $2,000 from the sale of the delivery van, there is no profit from the disposal.

$114,000 To begin with, Net credit sales amount to $2,250,000. The starting allowance for doubtful accounts stands at $36,000. During the year, $90,000 worth of uncollectible accounts were written off. First, we need to ascertain the adjustment needed for the allowance for doubtful accounts: Excess amount to adjust = Uncollectible accounts written off - Beginning allowance for doubtful accounts = $90,000 - $36,000 = $54,000 Allowance amount calculated as follows: 10% of the accounts receivable balance: 0.1 × $600,000 = $60,000 Thus, the necessary adjustment for the Allowance for Doubtful Accounts at December 31, 2017 totals to: Excess to adjust + Allowance amount = $54,000 + $60,000 = $114,000.

I would choose option C.