Maurice Tutor

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Algebra,Applied Sciences,Biology,Calculus,Chemistry,Economics,English,Essay writing,Geography,Geology,Health & Medical,Physics,Science Hide all
Teaching Since: May 2017
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  • MCS,PHD
    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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  • Professor
    Phoniex University
    Oct-2001 - Nov-2016

Category > Accounting Posted 24 Jul 2017 My Price 5.00

Prudoe Compounds

Prudoe Compounds produces a variety of chemicals that are used by auto manufacturers in their painting processes. With each batch of chemicals produced, some spoilage naturally occurs. Prudoe Compounds includes normal spoilage cost in its predetermined OH rate. For 2010, Prudoe Compounds estimated the following:
Overhead costs, other than spoilage ………………$600,000
Estimated spoilage cost ……………………………. 50,000
Estimated sales value of spoiled materials ………… 20,000
Estimated direct labor hours ………………………. 40,000
a. Prudoe Compounds applies overhead based on direct labor hours. Calculate the predetermined OH rate for 2010.
b. For a batch of chemicals mixed in May 2010, the firm experienced normal spoilage on Job #788. The cost of the spoiled material amounted to $1,730 and the company estimated the salvage value of those materials to be $496. Journalize the entry for the spoilage

Answers

Maurice Tutor
(5)
Status NEW Posted 24 Jul 2017 07:07 PM My Price 5.00

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