Discrete production losses are assumed to occur throughout the process
Indicate whether the statement is true or false
F
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Fredin Incorporated makes a single product-an electrical motor used in many long-haul trucks. The company has a standard cost system in which it applies overhead to this product based on the standard labor-hours allowed for the actual output of the period. Data concerning the most recent year appear below: Budgeted (Planned) Overhead: Budgeted variable manufacturing overhead$80,400 Budgeted fixed manufacturing overhead 185,700 Total budgeted manufacturing overhead $266,100 Budgeted production (a) 15,000units Standard hours per unit (b) 2.00labor-hours Budgeted hours (a) × (b) 30,000labor-hours ?The predetermined overhead rate is closest to:
A. $8.87 per labor-hour B. $17.74 per labor-hour C. $11.38 per labor-hour D. $22.76 per labor-hour
The mission of the not-for-profit organization, Save Our Butterflies Foundation, is to provide research and education concerning the conservation of butterflies. Which of the following expenses would be reported as a support expense by the Foundation?
A. The costs of depreciation on it butterfly facility. B. The cost of printed materials distributed to the local elementary schools on how to start butterfly gardens. C. The cost of printing and distributing its annual report. D. The costs of exhibiting at the local Nature Conservancy annual fair held for the general public.
Two firms, A and B, both produce widgets. The price of widgets is $1 each. Firm A has total fixed costs of $500,000 and variable costs of 50¢ per widget. Firm B has total fixed costs of $240,000 and variable costs of 75¢ per widget. The corporate tax rate is 40%. If the economy is strong, each firm will sell 1,200,000 widgets. If the economy enters a recession, each firm will sell 1,100,000 widgets. If the economy enters a recession, the after-tax profit of Firm B will be
A. $0. B. $6,000. C. $36,000. D. $60,000. E. -None of the options are correct.
Social considerations can be used to justify:
a. Allowance of a credit for child care expenses. b. Allowing excess capital losses to be carried over to other years. c. Allowing accelerated amortization for the cost of installing pollution control facilities. d. Allowing a Federal income tax deduction for state and local sales taxes. e. None of these.