Peppy Pups, a dog toy company, uses a job order costing system in which overhead is applied to jobs on the basis of direct labor hours. It's predetermined overhead rate is based on a cost formula that estimated $346,000 of manufacturing overhead for an estimated activity level 69,200 direct labor hours. Peppy Pups began the year with no raw materials, work in process or finished goods inventory. During the year, the following transactions were completed: Raw materials purchased, $300,000 Raw materials requisitioned for use in production, $280,000 (materials costing $220,000 were charged directly to jobs, the remaining material were indirect) Direct labor costs, $180,000 (at $4/direct labor hours) Indirect labor was, $72,000 Sales commissions and administrative salaries, $153,000 Utility costs incurred in the factory, $57,000 Advertising costs incurred, $140,000 Depreciation recorded on equipment, $100,000 ($88,000 of this amount was on equipment used in factory operations, the remaining was on equipment used in selling and administrative activities Manufacturing overhead was applied to jobs, S Sales for the year totaled S1,250,000 and the company's gross margin was $700,00. . Is the manufacturing overhead overapplied or underapplied for the year and by how much?

Bridgeport company began operations at the beginning of 2018. the following information pertains to this company. 1. pretax financial income for 2018 is $115,000. 2. the tax rate enacted for 2018 and future years is 40%. 3. differences between the 2018 income statement and tax return are listed below: (a) warranty expense accrued for financial reporting purposes amounts to $7,500. warranty deductions per the tax return amount to $2,200. (b) gross profit on construction contracts using the percentage-of-completion method per books amounts to $94,700. gross profit on construction contracts for tax purposes amounts to $67,100. (c) depreciation of property, plant, and equipment for financial reporting purposes amounts to $61,800. depreciation of these assets amounts to $75,700 for the tax return. (d) a $3,600 fine paid for violation of pollution laws was deducted in computing pretax financial income. (e) interest revenue recognized on an investment in tax-exempt municipal bonds amounts to $1,500. 4. taxable income is expected for the next few years. (assume (a) is short-term in nature; assume (b) and (c) are long-term in nature.) (a) prepare the reconciliation schedule for 2017 and future years. (b) prepare the journal entry to record income tax expense for 2017. (c) prepare the income tax expense section of the income statement beginning with “income before income taxes.” (d) determine how the deferred taxes will appear on the balance sheet at the end of 2017.

Afirm’s production function is represented by q(m,r) = 4m 3/4r1/3, where q denotes output, m raw materials, and r robots. the firm is currently using 6 units of raw materials and 12 robots. according to the mrts, in order to maintain its output level the firm would need to give up 2 robots if it adds 9 units of raw materials. (a) true (b) false

Apopular low-cost airline, parson corp., has gone out of business. although the service and price provided by the airline was what customers wanted, the larger airlines were able to drive the low-cost airline out of business through an aggressive price war. which component of the competitive environment does this illustrate? a) threat of new entrants b)competitors c) economic factors d) customers d) regulators