Equity method for stock investment on january 4, year 1, ferguson company purchased 480,000 shares of silva company directly from one of the founders for a price of $30 per share. silva has 1,200,000 shares outstanding, including the daniels shares. on july 2, year 1, silva paid $750,000 in total dividends to its shareholders. on december 31, year 1, silva reported a net income of $2,000,000 for the year. ferguson uses the equity method in accounting for its investment in silva. a. provide the ferguson company journal entries for the transactions involving its investment in silva company during year 1. year 1, jan. 4 year 1, july 2 year 1, dec. 31

Speedy auto repairs uses a job-order costing system. the company’s direct materials consist of replacement parts installed in customer vehicles, and its direct labor consists of the mechanics’ hourly wages. speedy’s overhead costs include various items, such as the shop manager’s salary, depreciation of equipment, utilities, insurance, and magazine subscriptions and refreshments for the waiting room. the company applies all of its overhead costs to jobs based on direct labor-hours. at the beginning of the year, it made the following estimates: direct labor-hours required to support estimated output 20,000 fixed overhead cost $ 350,000 variable overhead cost per direct labor-hour $ 1.00 required: 1. compute the predetermined overhead rate. 2. during the year, mr. wilkes brought in his vehicle to replace his brakes, spark plugs, and tires. the following information was available with respect to his job: direct materials $ 590 direct labor cost $ 109 direct labor-hours used 6