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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## This note was uploaded on 02/23/2011 for the course ACC 330 taught by Professor T during the Spring '11 term at Mt. Olive.

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

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