The management of Bullinger Corporation would like to investigate the possibility of basing its predetermined overhead rate on activity at capacity. The company's controller has provided an example to illustrate how this new system would work. In this example, the allocation base is machine-hours and the estimated amount of the allocation base for the upcoming year is 12,000 machine-hours. Capacity is 15,000 machine-hours and the actual level of activity for the year is assumed to be 10,700 machine-hours. All of the manufacturing overhead is fixed and both the estimated amount at the beginning of the year and the actual amount at the end of the year are assumed to be $16,560 per year. For simplicity, it is assumed that this is the estimated manufacturing overhead for the year as well as
the manufacturing overhead at capacity. It is further assumed that this is also the actual amount of manufacturing overhead for the year.If the company bases its predetermined overhead rate on capacity, then the predetermined overhead rate is closest to:
A. $1.38 per machine-hour
B. $1.10 per machine-hour
C. $1.57 per machine-hour
D. $1.55 per machine-hour
Answer: B
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Should international transportation costs decrease, the effect on international trade would include
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To divide fractions and mixed numbers, change any mixed numbers to improper fractions, invert the second fraction to it's reciprocal, and subtract.?
Answer the following statement true (T) or false (F)
Elliott is a consultant working on a research project for a client. His research has uncovered findings that are counter to what his customer was expecting. These ethical dilemma could potentially lead Elliott to do what?
A. perform qualitative analysis. B. perform quantitative analysis. C. realize the research results are suspect. D. review the company's ethical guidelines. E. fail to report his findings.
Alfarsi Industries uses the net present value method to make investment decisions and requires a 15% annual return on all investments. The company is considering two different investments. Each require an initial investment of $15,000 and will produce cash flows as follows: End ofYearInvestment?AB1$8,000 $0 2 8,000 0 3 8,000 24,000 The present value factors of $1 each year at 15% are: 10.869620.756130.6575 The present value of an annuity of $1 for 3 years at 15% is 2.2832.The net present value of Investment A is:
A. $18,266. B. $3,266. C. $(15,000). D. $(20,549). E. $9,000.