Bella, Inc. manufactures two kinds of bagslong dashtotes and satchels. The company allocates manufacturing overhead using a single plantwide rate with direct labor cost as the allocation base. Estimated overhead costs for the year are $ 26 comma 000. Additional estimated information is given below. Totes Satchels Direct materials cost per unit $ 32 $ 43 Direct labor cost per unit $ 53 $ 61 Number of units 520 400 Calculate the predetermined overhead allocation rate. (Round your answer to two decimal places.)

Estimated manufacturing overhead rate= $0.50 per direct labor dollar

Explanation:

Giving the following formula:

The company allocates manufacturing overhead using a single plantwide rate with direct labor cost as the allocation base.

The estimated overhead costs for the year are $26,000.

Direct labor cost per unit:

Totes= $53

Satchels= $61

Number of units:

Totes= 520

Satchels= 400

First, we need to calculate the total direct labor cost:

Total direct labor cost= 53*520 + 61*400= $51,960

To calculate the estimated manufacturing overhead rate we need to use the following formula:

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Estimated manufacturing overhead rate= 26,000/51,960= $0.50 per direct labor dollar

both are integral parts of a corporate balance sheet. the cash flow statement, or statement of cash flows, measures the sources of a company's cash and its uses of cash over a specific time period. the income statement measures a company's financial performance, such as revenues, expenses, profits or losses over a specific time period (in fact, it's sometimes called a statement of financial performance).

a cash flow statement shows exactly how much money a company has received and how much it has spent, traditionally over a period of one month. it captures the current operating results and changes on the balance sheet, such as increases or decreases in accounts receivable or accounts payable, and does not include noncash accounting items such as depreciation and amortization. the cash flow generally comes from revenue received as a result of business activity, but it may be augmented by funds available as a result of credit. a cash flow statement is used to determine the short-term viability and liquidity of a company, specifically how well it is positioned to pay its bills and vendors.

answer(b) revenue account which increases;