Crawford Company's standard fixed overhead cost is $6.00 per direct labor hour based on budgeted fixed costs of $600,000. The standard allows 1 direct labor hours per unit. During 2011, Crawford produced 110,000 units of product, incurred $630,000 of fixed overhead costs, and recorded 212,000 actual hours of direct labor.

Required:
What is the activity level on which Crawford based its fixed overhead rate?

Answers

Answer 1

Answer:

The answer is "[tex]\$ \ 100,000 \ hours[/tex]"

Explanation:

Budgeted fixed cost  [tex]= \$ 600,000[/tex]  

labour hours [tex]= \frac{ \$ 6 }{hour}[/tex]  

[tex]\text{overhead rate} = \frac{ \text{Budgeted fixed cost}}{labour\ hours}[/tex]

                     [tex]= \frac{\$ \ 600, 000}{\$ \ 6}\\\\= \$ \ 100,000 \ hours[/tex]


Related Questions

College football coaching requires that coaches design every facet of practices, set goals for their players, determine schedules, and even direct all of the plays during the games. College football coaching uses ____ type of managing.A. AchievementbConsideration
B. Background image
C. Charismad.D. Empathy.

Answers

Answer: d.  initiating structure

Explanation:

An Initiating structure management style is one in which the leader is very involved in the activities of the subordinates. They organize tasks, initiate group action and define the team's goals and roles.

This is what happens in collage football. The coach designs everything even on the pitch during games. They are therefore using an initiating structure management style.

Axel wants to punish a subordinate that he personally dislikes. However, the subordinate fulfils all his job duties and produces excellent work. Both Axel and the subordinate are governed by very comprehensive policies and rules negotiated by a union in a collective agreement. Which contingency does Axel lack that prevents him from arbitrarily punishing the subordinate

Answers

Answer: Discretion

Explanation:

Discretion simply means having the freedom to make judgment and take decisions without the person having to get permission form someone else or referring to certain rules.

Based on the question, we can see that Alex lack the discretion contingency as he can't decide and make decisions on his own and therefore cannot punish the subordinate.

Which of the following is an example of a disruptive innovation?
A. Use of smartphones with Internet access replacing use of
landlines
B. cruise line adding more destinations to their itineraries
C. Using different colored materials to create a line of shoes
D. An airline company purchasing a new jet

Answers

Answer: B

Explanation:

tell me if i'm wrong or right please! i rlly think its b tho

A: use of smartphones with internet access replacing use of landlines.

Under a perpetual inventory system, acquisition of merchandise for resale is debited to the Cost of Goods Sold account. the Supplies account. the Inventory account. the Purchases account.

Answers

Answer:

C. the Inventory account.

Explanation:

Under a perpetual inventory system, acquisition of merchandise for resale is debited to the Inventory account.

Which of the following would not tend to make a manufacturer choose a perpetual inventory system? A high volume of sales transactions and a manual accounting system. Management wants information about quantities of specific products. Items in inventory with high per unit costs. A low volume of sales transactions and a computerized accounting system.

Answers

Answer:

A high volume of sales transactions and a manual accounting system.

Environmental Designs issues 10,000 shares of its $1 par value common stock at $25 per share. (1) Record the issuance of the stock. (2) Record the issuance of stock assuming it is no-par stock.

Answers

Answer:

1. Dr Cash 250,000

Cr Common Stock 10,000

Cr Additional Paid-in Capital 240,000

2. Dr Cash 250,000

Cr Common Stock250,000

Explanation:

(1) Preparation of the journal entry toRecord the issuance of the stock

Dr Cash 250,000

(10,000 shares × $25)

Cr Common Stock 10,000

(10,000 shares × $1)

Cr Additional Paid-in Capital

240,000

(250,000-10,000)

( Being to record the Issue of common stock above par)

(2) Preparation of the journal entry to Record the issuance of the stock assuming it is no-par value stock.

Dr Cash 250,000

(10,000 shares × $25)

Cr Common Stock250,000

(Being to record the Issue of no-par value common stock)

Which of the following is one of the steps for recognizing revenue? Multiple Choice Identify the performance obligations of the contract. Determine whether bad debts can be reasonably estimated. Estimate the total transaction price of the contract based on fair value. Allocate all revenue to the performance obligation with the largest stand-alone selling price.

Answers

A) Identify the performance obligations of the contract.

B) Identify the contract with the customer.

C) Estimate the total transaction price of the contract based on the sum of the stand-alone selling prices of the goods and services in the contract.

D) Allocate the transaction price to the performance obligations.

- A performance obligation is a promise to deliver a good or provide a service (or a series of distinct goods or services that are substantially the same and that have the same pattern of transfer to the customer).

The following data have been recorded for recently completed Job 450 on its job cost sheet. Direct materials cost was $2,050. A total of 39 direct labor-hours and 261 machine-hours were worked on the job. The direct labor wage rate is $20 per labor-hour. The Corporation applies manufacturing overhead on the basis of machine-hours. The predetermined overhead rate is $22 per machine-hour. The total cost for the job on its job cost sheet would be:

Answers

Answer:

Total cost= $8,572

Explanation:

First, we need to calculate the direct labor and allocated overhead:

Direct labor cost= 39*20= $780

Allocated overhead= 22*261= $5,742

Now, we can determine the total cost:

Total cost= direct material + direct labor + allocated overhead

Total cost= 2,050 + 780 + 5,742

Total cost= $8,572

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