Which of the following statements is correct?
A. Idle time should be accounted for as a special type of loss.
B. Idle time should be treated as a component of direct labor.
C. Overtime premiums should be treated as a component of direct labor.
D. Overtime premiums should be treated as a component of manufacturing overhead.
E. Overtime premiums should be treated as a component of direct labor and idle time should be treated as a component of direct labor.
Answer: D
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Suppose Randy Jones plans to invest $1,000. He can earn an effective annual rate of 5% on Security A, while Security B has an effective annual rate of 12%. After 11 years, the compounded value of Security B should be somewhat less than twice the compounded value of Security A. (Ignore risk, and assume that compounding occurs annually.)
Answer the following statement true (T) or false (F)
Broadway Company produces and sells two models of calculators. The following monthly data are provided: Standard PremiumUnit selling price$100 $150 Unit variable manufacturing cost$60 $90 Unit variable selling and administrative cost$15 $30 Number of units produced and sold 3,000 1,000 Total monthly fixed costs are expected to be $15,000. What is the break-even point in sales dollars at the expected sales mix? (Do not round intermediate calculations.)
A. $68,182 B. $19,231 C. $43,478 D. $64,286
A "commitment fee" is used in arranging for a:
A. installment loan. B. commercial loan. C. line of credit. D. character loan.
What is the current price of a $1,000 par value bond maturing in 12 years with a coupon rate of 14 percent, paid semiannually, that has a YTM of 13 percent?
A) $604 B) $1,090 C) $1,060 D) $1,073