A machine with a cost of $75,000 has an estimated residual value of $5,000 and an estimated life of 4 years or 18,000 hours. What is the amount of depreciation for the second full year, using the double declining-balance method?
A) $17,500
B) $37,500
C) $18,750
D) $16,667
C
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When we refer to "democratizing" of innovation, we mean that:
A) the new product development teams should report directly to the top management. B) the new product development teams should be treated like startup companies. C) customers can be treated as the best source of new-product ideas. D) the product development cycle should be minimized.
Most small businesses are more ________ than ________.
A. profit-directed; cost-directed B. innovative; imitative C. imitative; innovative D. cost-directed; profit-directed
Mohr Company purchases a machine at the beginning of the year at a cost of $30,000. The machine is depreciated using the double-declining-balance method. The machine's useful life is estimated to be 8 years with a $5000 salvage value. Depreciation expense in year 2 is:
A. $7500. B. $6250. C. $22,500. D. $3750. E. $5625.
Bachrodt Corporation uses activity-based costing to compute product margins. Overhead costs have already been allocated to the company's three activity cost pools--Processing, Supervising, and Other. The costs in those activity cost pools appear below: Processing$21,600Supervising$3,700Other$10,700Processing costs are assigned to products using machine-hours (MHs) and Supervising costs are assigned to products using the number of batches. The costs in the Other activity cost pool are not assigned to products. Activity data appear below MHs (Processing)Batches (Supervising)Product Y73,700400Product V06,300600Total10,0001,000Finally, sales and direct cost data are combined with Processing and Supervising costs to determine product margins. Product Y7Product V0?Sales
(total)$102,200$78,900?Direct materials (total)$40,800$39,100?Direct labor (total)$47,200$22,300?What is the overhead cost assigned to Product Y7 under activity-based costing? A. $18,000 B. $9,472 C. $7,992 D. $1,480