ACCT.PRINCIPLES (LL)-PACKAGE
ACCT.PRINCIPLES (LL)-PACKAGE
14th Edition
ISBN: 9781119707103
Author: Weygandt
Publisher: WILEY
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Chapter 7, Problem 4Q
To determine

Enterprise resource planning: Enterprise resource planning is an integrated system which is used by big manufacturing companies having revenue of more than $500 million. This has a wider aspect than the entry-level computerized system. It integrates all the aspects of accounting, sales, human resources, and manufacturing.

Entry level computerized system: The entry-level computerized system is that system which is used by small companies having revenue of less than $5 million. These entry-level programs come in specific versions which are designed according to the industry. These programs have many features along with recording the transactions and preparing the statements.

To Explain: Difference between enterprise resource planning and entry-level computerized accounting system.

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The Tansen Manufacturing overhead budget is based on budgeted direct labor-hours. The direct labor budget indicates that 9,500 direct labor-hours will be required in September. The variable overhead rate is $6.00 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $145,000 per month, which includes depreciation of $32,500. All other fixed manufacturing overhead costs represent current cash flows. The company recomputes its predetermined overhead rate every month. What should be Tansen Manufacturing’s predetermined overhead rate for September? A. $6.00 B. $18.90 C. $21.26 D. $16.00
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