Homework_Solution

Homework_Solution - Chapter 2 Homework Solution 22. a. One...

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Chapter 2 Homework Solution 22. a. One month of insurance ($18,600 ÷ 6) $ 3,100 Bonus to corporate president 10,000 Utility cost on headquarters ($20,000 x .40) 8,000 Total $21,100 b. Five months of insurance ($18,600 x 5/6) $15,500 Seminar fee 1,000 Total $16,500 c. Property taxes ($15,000 x 1/3) $ 5,000 Utility cost on factory ($20,000 x .60) 12,000 Total $17,000 d. Product costs are assigned to products made; thus, the costs cannot be classified as expired or unexpired because it is not known whether the associated products made during May were sold. If sold, the costs would be expired; if unsold, the costs would be unexpired and be accumulated in the Finished Goods account. 28. a. 6,000 total hours – 5,000 regular hours = 1,000 overtime hours b. Direct labor: 5,000 hours x $9 per hour = $45,000 Overhead: $54,000 - $45,000 = $9,000 c. Shift premiums: Second shift: 10% x $9 = $0.90 Overtime premium: 75% x $9 = $6.75 Overhead costs: Second shift premium: 2,500 hours x $0.90 = $2,250
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Homework_Solution - Chapter 2 Homework Solution 22. a. One...

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