Chapter 3, Problem 3.9P

How is the income statement of a merchandising company different from that of a service company?

Bright Electronics Corporation applies manufacturing overhead on the basis of labor-hours. At the beginning of the most recent year, the company based its predetermined overhead rate on total estimated overhead of $72,000. Actual manufacturing overhead for the year amounted to $70,000, and actual labor-hours were 6,400. The company's predetermined overhead rate for the year was $11.25 per labor-hour. The applied manufacturing overhead for the year was closest to:

Everlast Manufacturing uses a standard cost system. • Standards call for 2.5 direct labor hours per unit. The standard labor rate is $14 per hour. Four pounds of material are needed per unit at a standard cost of $2.80 per pound. . Everlast produces 12,800 units during the year. • • Direct labor costs are $460,320 for 33,100 hours. Everlast purchases 58,500 pounds of materials at $3.00 per pound and uses 54,800 pounds (the rest remain in inventory). For direct labor, what is the efficiency (usage) variance?

If total assets decreased by $15,000 and stockholders' equity increased by $5,500 during a period of time, then total liabilities must have changed by what amount and direction during that same period?

General accounting

Subjects Accounting Question?

what is the overhead at the end of the year?

Solution

Financial accounting