Vex Corporation manufactures a variety of products. In the past, Vex had been using a traditional overhead allocationsystem based on macjine hours. For the current year, Vex decided to swithch to activity-based costing using machine hours and the number of inspections as measures of activity. Information on these measures of activity are related overhead rates for the current year are as follows; ESTIMATED ACTIVITY PREDETERMINED OVERHEAD RATE.

Machine Hours 50,000 $8 Per Machine Hour

Number of inspections 3,000 $40 per inspection

Job no. 812 for the current year required 15 machine hours and 2 inspections. Would this job have been overcosted or undercosted under the traditional sytem.

Which is not an example of a cyclical company? a) airlines b) hotel industry c) medical d) theme parks

Materials purchases (on credit). direct materials used in production. direct labor paid and assigned to work in process inventory. indirect labor paid and assigned to factory overhead. overhead costs applied to work in process inventory. actual overhead costs incurred, including indirect materials. (factory rent and utilities are paid in cash.) transfer of jobs 306 and 307 to finished goods inventory. cost of goods sold for job 306. revenue from the sale of job 306. assignment of any underapplied or overapplied overhead to the cost of goods sold account. (the amount is not material.) 2. prepare journal entries for the month of april to record the above transactions.

Oakmont company has an opportunity to manufacture and sell a new product for a four-year period. the company’s discount rate is 18%. after careful study, oakmont estimated the following costs and revenues for the new product: cost of equipment needed $ 230,000 working capital needed $ 84,000 overhaul of the equipment in year two $ 9,000 salvage value of the equipment in four years $ 12,000 annual revenues and costs: sales revenues $ 400,000 variable expenses $ 195,000 fixed out-of-pocket operating costs $ 85,000 when the project concludes in four years the working capital will be released for investment elsewhere within the company. click here to view exhibit 12b-1 and exhibit 12b-2, to determine the appropriate discount factor(s) using tables.