Bassett Corporation has two production departments, Milling and Customizing. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Milling Department's predetermined overhead rate is based on machine-hours and the Customizing Department's predetermined overhead rate is based on direct labor-hours. At the beginning of the current year, the company had made the following estimates: MillingCustomizingMachine-hours 16,000 12,000Direct labor-hours 2,000 8,000Total fixed manufacturing overhead cost$118,400$87,200Variable manufacturing overhead per machine-hour$2.10 Variable manufacturing overhead per direct labor-hour $3.30The predetermined overhead rate for the Milling Department is closest to:
A. $2.10 per machine-hour
B. $9.50 per machine-hour
C. $7.40 per machine-hour
D. $19.00 per machine-hour
Answer: B
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Under the allowance method, Uncollectible Accounts Expense is recorded
a. for an estimated amount. b. several times during the accounting period. c. when an individual account is written off. d. for a known amount.
VB Inc., a shoe manufacturer, sponsors a campaign that advertises the availability of its running shoes at Shoe Rack, a retail chain. This is an example of ________ advertising.
A. comparative B. vertical cooperative C. ingredient-producer cooperative D. parody E. horizontal cooperative
Compare and contrast the three marketing philosophies discussed in the text. Give supporting evidence on why one method is stronger than the others.
What will be an ideal response?
The following data have been provided by Corby Corporation for the Circuit Prep Department. The company uses the FIFO method in its process costing. Units in process, August 1: materials 60% complete, conversion 45% complete500Units started into production during August8,900Units started and completed during August7,800Units completed and transferred to the next department during August8,300Units in process, August 31: materials 80% complete, conversion 40% complete1,100 Required:Determine the equivalent units of production for the Circuit Prep Department for August using the FIFO method.
What will be an ideal response?