ACC 102 Fundamental Of Accounting Ii B2 Ti 2018
Calculate The Predetermine Factory Overhead Rate For Each Company.
Last Year Overhead Rate
Current Year Expected Data
Indicate Whether Factory Overhead Was Over Applied Or Under Applied For Each Company And By How Much
Solution
Aloe ltd was under applied with a very little margin but Basil ltd was over applied as its cost of factory over head going to increase but its labour hours going to decrease in expected data. (Accounting for management, 2012)
Prepare A Schedule Of Estimated Cash Collection From Revenue For The First 6 Months Of 2020 For Bounce Athletics Ltd.
Solution
Using Only The Differential Income And Expenses Determine Which Adventure David Should Provide.
First adventure cost:
Income: rock climbing= 10*860=$8600
Food and equipment= 180*10+2500=1800+2500=$4300
Total income= 8600+4300=$12900
Cost= 1100+2800=$3900
Profit=12900-3900= $9000
Second adventure cost:
Income: white water rafting= 8*900=$7200
Food and equipment = 170*8+2500=1360+2500=$3860
Total income= 7200+3860=$11060
Cost= $3900
Profit= 11060-3900= $7160
So, after all the required calculation, David want to select first adventure as it give more profit to David as compare to second adventure.
(Mike Brewer, 2012)