, 02.12.2019 23:20

# O’dell vegetables purchased a harvesting machine on july 1, 2016, for \$984,000. the machine was estimated to have a useful life of 8 years with an estimated salvage value of \$140,000. o’dell uses the straight-line method of depreciation. during 2019, it became apparent that the machine would become uneconomical after december 31, 2023, and that the machine would have no scrap value. what should be the charge for depreciation in 2019 under generally accepted accounting principles?

Walton corporation estimated its overhead costs would be \$23,600 per month except for january when it pays the \$159,540 annual insurance premium on the manufacturing facility. accordingly, the january overhead costs were expected to be \$183,140 (\$159,540 + \$23,600). the company expected to use 7,400 direct labor hours per month except during july, august, and september when the company expected 9,200 hours of direct labor each month to build inventories for high demand that normally occurs during the christmas season. the company's actual direct labor hours were the same as the estimated hours. the company made 3,700 units of product in each month except july, august, and september, in which it produced 4,600 units each month. direct labor costs were \$24.60 per unit, and direct materials costs were \$10.30 per unit. required calculate a predetermined overhead rate based on direct labor hours. determine the total allocated overhead cost for january, march, and august. determine the cost per unit of product for january, march, and august. determine the selling price for the product, assuming that the company desires to earn a gross margin of \$21.70 per unit.