Jordynne was the manager of Pets-R-Us, a pet store in Southern Valley Mall. Pets-R-Us had a one-year lease, and rent payments we

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:

a) the small bus

b) the medium or large bus

c) the small bus

Explanation:

a) using the maximin criterion, the manager aims to maximize the least possible profit (a pessimistic approach), which results in the following profits:

Bus size Demand

Low Medium High

Small 50 60 70 → minimum profit = 50

Medium 40 80 90 → minimum profit = 40

Large 20 50 120 → minimum profit = 20

Thus, the optimal choice yielding the highest minimum profit is the small bus.

b) applying the maximin criterion, the manager will seek to minimize potential maximum losses, determining losses based on the best profit scenario:

Bus size Demand

Low Medium High

Small 0 -20 -50 → maximum loss = -50

Medium -10 0 -30 → maximum loss = -30

Large -30 -30 0 → maximum loss = -30

Hence, the option that bears the least maximum loss is either the medium or large bus.

c) for calculating the expected value of each option:

small = 30/100*50 + 30/100*60 + 40/100*70 = 61

medium = 30/100*40 + 30/100*80 + 40/100*90 = 72

large = 30/100*20 + 30/100*50 + 40/100*120 = 69

The small bus turns out to be the best choice, as it has the highest expected profit.

Answer:

Which journal entry did Pincus make to account for uncollectible accounts in 2021?

During 2021, the company identified $10,800 as uncollectible accounts.

Dr Allowance for Uncollectible Accounts $ 10,800

Cr Accounts Receivable $ 10,800

And how is the bad debt expense recognized for 2021?

Pincus predicts that 5% of the accounts receivable as of 12/31/2021 will not be collected.

Dr Bad Debt Expense $ 1,520

Cr Allowance for Uncollectible Accounts $ 1,520

Explanation:

Pincus rendered services totaling $268,000 on credit.

Dr Accounts Receivable $ 268,000

Cr Sales $ 268,000

In 2021, $10,800 was identified as uncollectible accounts.

Dr Allowance for Uncollectible Accounts $ 10,800

Cr Accounts Receivable $ 10,800

Using the allowance method for bad debts, when an account is written off, the company records a debit to the Allowance for Uncollectible Accounts previously estimated, and a credit to accounts receivable to adjust the accounts receivable balance.

By year-end 2021, cash collected from accounts receivable amounted to $226,800.

Dr Cash $ 226,800

Cr Accounts Receivable $ 226,800

REMAINING BALANCE

Dr Accounts Receivable $ 30,400

Pincus assesses that 5% of the accounts receivable at 12/31/2021 will be uncollectible.

Dr Bad Debt Expense $ 1,520

Cr Allowance for Uncollectible Accounts $ 1,520