Business, 20.09.2019 10:30 pierceybbpow8o39

The predetermined overhead rate for neutronics, inc. is 70% of direct labor cost. the company incurs $250,000 of factory labor costs during the month and $180,000 of that cost is direct labor and $70,000 is indirect labor. actual overhead incurred was $130,000. what should be the amount of overhead debited to work in process inventory?

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Answer from: Violinartist7267

The amount that should be debited to work-in-progress inventory is $126,000.

Further Explanation:

Overhead:

Overhead refers to the business expenses that are not directly associated with the production but required in the production process of the product. The overhead are incurred to support the business activities for the undisturbed flow of the operating activities. The overhead does not include the direct costs of the production such as direct material and direct labor. There are majorly two types of overhead:

Manufacturing overhead Administrative overhead

Calculate the work-in-progress inventory:

The work-in-progress inventory can be calculated by multiplying the overhead rate of 70% with the total direct labor cost which is $180,000. It will be the budgeted overhead cost.

$\begin{aligned}\text{Work-in-progress inventory}&=\text{Direct labor cost}\times{\text{Overhead rate}}\\&=\$180,000\times{70\%}\\&=\$126,000 \end{aligned}$

Thus, the amount that should be debited to work-in-progress inventory is $126,000.

Learn More:

Learn more about the variance Learn more about the demand Learn more about the marginal revenue

Answer Details:

Grade: Middle school

Chapter: Overhead allocation

Subject: Cost accounting

Keywords: cost accounting, predetermined, overhead, rate, for, neutronics, inc,direct, labor, cost, company, incurs, factory,labor, costs, during, month, direct labor,indirect labor, actual, overhead, incurred, amount, overhead, debited,work in process inventory.

Answer from: Quest

idk the answer to this question

Answer from: Quest

Answer:

the correct answer is economics is a game without winners or losers.

explanation:

unlike sports or games economic is a game without losers or winner rather it is a game where everyone wins. parties of business doing businesses exchange money with each other and hence exchange is done on the basis of goods. one party takes the goods and other sales it so there is winner on both sides. each party values more highly the good it gets than the good it gives up. both sides exchange only because both intend to increase their value. so there is no concept of lose or win.

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