The Omega Company Manufactures Customized Motors on a Job-Order Basis

question 57

Short Answer

The Omega Company manufactures customized motors on a job-order basis. Job 492 is an order for 100 units. It requires the following: $$\begin{array} { l c } \text { direct materials } & \$ 3,000 \\\text { direct labor } ( \$ 10 / h r ) & 1,000 \\\text { overhead } ( 150 \% \text { DL } \$ ) & 1,500\end{array}$$
After inspection, 2 units required rework which required 8 additional direct labor hours and $60 of materials.
If the rework is considered normal spoilage, what is the journal entry for overhead control? $\text { a. no journal entry is needed }$

$\begin{array}{ll}\text {b. materials } & \$ 60 \\\text { payroll } & \$ 80\\\text { overhead control } & \$ 140\end{array}$

$\begin{array}{ll}\text { c. overhead control } &\$ 140\\\text { materials } & \$ 60 \\\text { payroll } & \$ 80\end{array}$

$\text { d. none of the above }$

Determine the most profitable investment option among different interest rates and compounding frequencies.

Calculate the total return on investment, including both income yield and capital gain yield.

Understand the impact of compound interest over multiple periods and its application to real investment scenarios.

Analyze the financial implications of negotiated salary increases over a period.

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Definitions:

Government Subsidy

Financial support given by the government to businesses, individuals, or other governmental bodies to encourage production and consumption, reduce inequalities, or support economic activities deemed beneficial for society.

Product Supply

The total amount of a product or service that is available for purchase at any given time or price.

Oil Declines

A reduction in the price or availability of oil, often due to changes in supply, demand, or geopolitical factors.

Gasoline

A highly flammable liquid derived from petroleum, used primarily as fuel in internal combustion engines.