John is in a high income-tax bracket and wishes to minimize current taxes payable. He also has a sizeable current income and prefers high growth rates to significant annual cash flow from his equity investments
Which of the following dividend polices would John most likely prefer if we assume that the dividend policy has no impact on the value of the firm and that the capital gains tax rate is lower than the ordinary tax rate?
A) High-dividend-payout policy
B) No-dividend-payout policy
C) Low-dividend-payout policy
D) John would be indifferent to all of the dividend policies.
Answer: B
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Allen Company's master budget called for 50,00 . units of production. Budgeted direct material costs at this level were $450,00 . or $9 per unit. Allen actually produced 54,00 . units and incurred direct material costs of $496,000 . What is Allen's direct material variance using flexible budgeting?
a. $10,00 . U b. $46,00 . U c. $36,00 . U d. $10,00 . F
The accounting records of Omar Corporation contained the following information for last year: BeginningEndingDirect materials inventory$9,000 $7,000 Work in process inventory$17,000 $31,000 Finished goods inventory$10,000 $15,000 Manufacturing Costs IncurredDirect materials used$72,000Overhead applied$24,000Direct labor cost (10,000 hours)$80,000Depreciation$10,000Rent$12,000Taxes$8,000Unadjusted cost of goods sold (does not includeoverapplied or underapplied overhead)$157,000 Selling, General, andAdministrative Costs IncurredAdvertising$35,000 Rent$20,000 Clerical$25,000 If Omar Corporation applies overhead to jobs on the basis of direct labor-hours and Job 3 took 120 hours, how much overhead should be applied to that job?
A. $288 B. $360 C. $528 D. $960
Which of the following statements is true?
a. In a manufacturing company, the production budget is prepared first. b. A sales budget is normally prepared for a year then divided into quarters or months. c. Internal information needed for sales forecasting would include life cycles of products while external information would include changes in the client base. d. None of the above choices is true.
Which of the following is not used to calculate the break-even point?
a. Simultaneous equations approach. b. Income statement approach. c. Graphing approach. d. Formula approach.