Kiker 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 machine-hours allowed for the actual output of the period. Data concerning the most recent year appear below: Budgeted (Planned) Overhead: Budgeted variable manufacturing overhead$112,000 Budgeted fixed manufacturing overhead 311,920 Total budgeted manufacturing overhead$423,920 Budgeted production (a) 35,000unitsStandard hours per unit (b) 1.60machine-hoursBudgeted hours (a) × (b) 56,000machine-hours The predetermined overhead rate is closest to:
A. $15.32 per machine-hour
B. $12.11 per machine-hour
C. $9.57 per machine-hour
D. $7.57 per machine-hour
Answer: D
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A) The production of potato chips B) The production of sports energy drinks C) The creation of wedding photography portraits D) The refining of gasoline
The master budget is a static budget because it
a. is geared to only one level of production and sales. b. never changes from one year to the next. c. covers a preset period of time. d. always contains the same operating and financial budgets.
Reusing the exact same words is referred to as ______.
Fill in the blank(s) with the appropriate word(s).
You are looking at a stock quotation in the newspaper and read that its "net change" is +2.5. This means that
A) the difference between its high price and low price for the day was $2.50. B) its closing price was $2.50 higher than its closing price of the previous trading day. C) over the past 12 months the stock's highest price is 2.5 times its lowest price. D) its dividend yield this year is 2.5% higher than its dividend yield last year.