11. Totomato Tires Company (TTC) uses machine hours to determine its predetermined overhead rates. At the...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
11. Totomato Tires Company (TTC) uses machine hours to determine its predetermined overhead rates. At the beginning of the year, JGC estimated its 2013 machine hours to be 10,000 hours and estimated its 2013 manufacturing overhead to be $1,500,000. Actual 2013 machine hours were 11,000 hours, and actual 2013 manufacturing overhead was $1,800,000. At the end of the year, TTC made an accounting entry to include the over-applied or under- applied overhead in cost of goods sold. What impact did that entry have on TTC's net operating profit? A. Reduce net operating income by $150,000. B. Reduce net operating income by $50,000. C. Increase net operating income by $300,000. D. Reduce net operating income by $300,000. E. Increase net operating income by $150,000. 11. Totomato Tires Company (TTC) uses machine hours to determine its predetermined overhead rates. At the beginning of the year, JGC estimated its 2013 machine hours to be 10,000 hours and estimated its 2013 manufacturing overhead to be $1,500,000. Actual 2013 machine hours were 11,000 hours, and actual 2013 manufacturing overhead was $1,800,000. At the end of the year, TTC made an accounting entry to include the over-applied or under- applied overhead in cost of goods sold. What impact did that entry have on TTC's net operating profit? A. Reduce net operating income by $150,000. B. Reduce net operating income by $50,000. C. Increase net operating income by $300,000. D. Reduce net operating income by $300,000. E. Increase net operating income by $150,000.
Expert Answer:
Answer rating: 100% (QA)
What impact did the entry have on TTC Net operating Profit Answer The Budgeted manufacturi... View the full answer
Related Book For
Posted Date:
Students also viewed these marketing questions
-
The television game show Deal or No Deal begins with individual suitcases containing the amounts of 1c, $1, $5, $10, $25, $50, $75, $100, $200, $300, $400, $500, $750, $1000, $5000, $10,000, $25,000,...
-
After getting to know them better, you have approached Williwonks management people with your ideas on possible systems improvements that could address some of the problems or opportunities given in...
-
The game show Deal or No Deal involves a series of opportunities for the contestant to either accept an amount of money from the shows banker or to decline it and open a specific number of briefcases...
-
why is teamwork so important especially in healthcare? explain
-
What was the trigger that started the crisis? If it didnt happen would the crisis have been averted?
-
The doping concentrations in a silicon pn junction are \(N_{d}=5 \times 10^{15} \mathrm{~cm}^{-3}\) and \(N_{a}=10^{17} \mathrm{~cm}^{-3}\). The zero-bias junction capacitance is \(C_{j o}=0.60...
-
A fixed asset (a machine) was purchased by Adjourn plc on 1 July 20X1 at a cost of 25,000. The company prepares its annual accounts to 31 March in each year.The policy of the company is to depreciate...
-
In a monopolistically competitive market, the government applies a specific tax of $ 1 per unit of output. What happens to the profit of a typical firm in this market? Does the number of firms in the...
-
The selling price of a tonne of Sugar is $600. At this price, the FSC plans to sell 5000 tonnes in week. The FSC board wants to have a mark-up of 20% on cost. The expected production cost is $520 per...
-
Fokine Research Institute has three departments: biology, chemistry, and physics. The institute's controller wants to estimate the cost of operating each department. He has identified several...
-
Data table For Specific Date Direct materials inventory, January 1, 2020 Work-in-process inventory, January 1, 2020 Finished goods inventory, January 1, 2020 Direct materials inventory, December 31,...
-
Evaluate the following 7-year project: you invest $1,000 today, Year 1 pays you back $300, Year 2 pays you $400, Year 3 pays you $300. In Year 4 you invest another $500. Year 5 pays you $200, Year 6...
-
Abrafi has just set up a company and has recently commissioned the services of a firm of management consultants at an estimated cost of 5 0 million. The consultants report, to date, indicates that if...
-
10) The table below displays the gender and favorite sport of a class of students. A student is selected at random. Male Basketball 16 Female 2 Total 18 Baseball 27 6 33 Tennis 5 16 21 Swimming 12 16...
-
Find fogo h. f(x) = x5 +8, g(x) = x -7, h(x) = x MY NO Express the function F in the form fogo h. (Enter your answers as a comma-separated list. Use non-identity functions for f(x), g(x) and h(x).) 5...
-
At 25C and 1 bar, the differential heat of solution of KCl in water at infinite dilution is 17.22 kJ/mol. A saturated 25C aqueous KCl solution has KC1 molality 4.82 mol/kg and activity coefficient y...
-
A partial trial balance of Lindy Corporation at December 31:2000, follows Dr. Cr. Supplies $11.300 Salaries and wages payable $5,000 Interest receivable 2.720 Prepaid insurance 114.200 Unearned rent...
-
The trade-off theory relies on the threat of financial distress. But why should a public corporation ever have to land in financial distress? According to the theory, the firm should operate at the...
-
Speaking Couples Listed below are the numbers of words spoken in a day by each member of six different couples. The data are randomly selected from the first two columns in Data Set 17 from Appendix...
-
Construct the cumulative frequency distribution that corresponds to the frequency distribution in the exercise indicated. Age (years) of Best Actor When Oscar Was Won 20-29 30-39 40-49 50-59 60-69...
-
Find the standard deviation of sample data summarized in a frequency distribution table by using the formula below, where x represents the class midpoint, f represents the class frequency, and n...
-
SnoBoard Companys year-end balance in its Allowance for Doubtful Accounts is a credit of $440. By aging accounts receivable, it estimates that $6,142 is uncollectible. Prepare SnoBoards year-end...
-
Calculate the amount recorded as the cost of a new machine given the following payments related to its purchase: gross purchase price, $700,000; sales tax, $49,000; purchase discount taken, $21,000;...
-
Wecker Companys year-end unadjusted trial balance shows accounts receivable of $89,000, allowance for doubtful accounts of $500 (credit), and sales of $270,000. Uncollectibles are estimated to be...
Study smarter with the SolutionInn App