A company will report overapplied overhead when the:
a. actual overhead rate is more than predetermined overhead rate.
b. applied overhead is less than actual overhead.
c. applied overhead is greater than actual overhead.
d. estimated units of cost driver is more than the actual units of cost driver.
c
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In a perpetual inventory system, merchandise returned to vendors reduces the merchandise inventory account
Indicate whether the statement is true or false
If revenues total $5,000 and expenses total $4,000, after all the closing entries have been journalized and posted, what will be the balance of the Income Summary account?
a. $1,000 b. $5,000 c. $6,000 d. $9,000 e. None of the above
Under the replacement cost insurance, an insurer has the right to either pay the insured for the loss or pay to have the property restored
Indicate whether the statement is true or false
A firm estimates that it will receive cash flows from a new product of $25,000 in Year 1, $22,000 in Year 2, and $19,000 in Year 3. If a discount rate of 8% is assumed, what is the NPV of this product’s cash flows?
a. $71,280 b. $57,092 c. $66,000 d. NPV cannot be determined from the information given