Petty Corporation has two production departments, Milling and Finishing. 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 Finishing 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: MillingFinishingMachine-hours 20,000 14,000Direct labor-hours 2,000 8,000Total fixed manufacturing overhead cost$148,000$88,000Variable manufacturing overhead per machine-hour$1.90 Variable manufacturing overhead per direct labor-hour $3.60The predetermined overhead rate for the Finishing Department is closest to:
A. $3.60 per direct labor-hour
B. $14.60 per direct labor-hour
C. $11.00 per direct labor-hour
D. $5.84 per direct labor-hour
Answer: B
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Cost slope can be determined by dividing the
A. Indirect cost by direct cost. B. Rise by the run. C. Crash cost by the normal cost. D. Run by the rise. E. Normal cost by the crash cost.
Quibble Company established a $300 petty cash fund by issuing a check to the custodian on February 1. On February 15, the petty cash fund was replenished and increased to $800 in total. The contents of the petty cash fund at the time of the February 15 replenishment were:Currency and coins?$12Petty cash receipts for:?? Transportation-in for inventory$39? Delivery expense88? Repairs to office equipment47? Postage64? Entertainment of customers53291Total?$303The company uses the perpetual inventory method. Prepare Quibble's general journal entry to record both the reimbursement and the increase of the petty fund on February 15.
What will be an ideal response?
Computing each liability as a percentage of total assets is known as:
a. the acid-test ratio. b. horizontal analysis. c. common-size financial statements. d. All of the choices are true.
Which of the following is not true regarding the use of labor variance information?
A) The actual wage rate is almost always different from the standard rate. B) Unexpected overtime can cause variation in the labor rate. C) An average wage rate is chosen as the labor rate standard. D) The production manager controls the use of labor. E) The actual wage rate is used in determining the labor rate variance.