Cost Driver Used as Allocation Base Number of parts used Number of machine hours Direct labor hours worked Number of units tested The following production, costs, and activities occurred during the month of April: Direct Materials Costs $ 3,300,000 Activity Cost Driver Materials handling Milling and grinding. Assembly and inspection Testing Units Produced/Tested 53,000 Budgeted Costs for 2022 $ 5,400,000 8,400,000 6,100,000 1,000,000 Total manufacturing cost Cost per unit produced and tested Number of Parts Used 280,000 Machine Hours 98,000 Required: a. Calculate the total manufacturing costs and the cost per unit produced and tested during the month of April for HealthTech. Note: Round "Cost per unit" to 2 decimal places. Cost Allocation Rate $ 3.25 per part 15.00 per hour 4.50 per hour 3.25 per unit ABC does not help in decision-making. Direct Labor Hours 150,000 b. Which of the following are the advantages of the ABC approach relative to using a single predetermined overhead application rate based on direct labor hours. (Note: You do not have to calculate the overhead that would be applied for the month of April using this alternative method.) Note: You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect. ? ABC systems produce more accurate financial information. ? ABC approach is likely to provide better information to manufacturing managers. ?ABC helps in decision-making. ? ABC systems produce more accurate product costing information.
The Effect Of Prepaid Taxes On Assets And Liabilities
Many businesses estimate tax liability and make payments throughout the year (often quarterly). When a company overestimates its tax liability, this results in the business paying a prepaid tax. Prepaid taxes will be reversed within one year but can result in prepaid assets and liabilities.
Final Accounts
Financial accounting is one of the branches of accounting in which the transactions arising in the business over a particular period are recorded.
Ledger Posting
A ledger is an account that provides information on all the transactions that have taken place during a particular period. It is also known as General Ledger. For example, your bank account statement is a general ledger that gives information about the amount paid/debited or received/ credited from your bank account over some time.
Trial Balance and Final Accounts
In accounting we start with recording transaction with journal entries then we make separate ledger account for each type of transaction. It is very necessary to check and verify that the transaction transferred to ledgers from the journal are accurately recorded or not. Trial balance helps in this. Trial balance helps to check the accuracy of posting the ledger accounts. It helps the accountant to assist in preparing final accounts. It also helps the accountant to check whether all the debits and credits of items are recorded and posted accurately. Like in a balance sheet debit and credit side should be equal, similarly in trial balance debit balance and credit balance should tally.
Adjustment Entries
At the end of every accounting period Adjustment Entries are made in order to adjust the accounts precisely replicate the expenses and revenue of the current period. It is also known as end of period adjustment. It can also be referred as financial reporting that corrects the errors made previously in the accounting period. The basic characteristics of every adjustment entry is that it affects at least one real account and one nominal account.
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