Foster Florist specializes in large floral bouquets for hotels and other commercial spaces. The company has provided the following data concerning its annual overhead costs and its activity-based costing system:Overhead costs: Wages and salaries$70,000Other expenses 50,000Total$120,000Distribution of resource consumption:Activity Cost Pools?Order SizeCustomer SupportOtherTotalWages and salaries70%20%10%100%Other expenses45%25%30%100%The "Other" activity cost pool consists of the costs of idle capacity and organization-sustaining costs.The amount of activity for the year is as follows:Activity Cost Pool ActivityMaking bouquets40,000bouquetsDelivery1,000deliveriesWhat would be the total overhead cost per delivery according to the activity-based costing system? In other words,
what would be the overall activity rate for the deliveries activity cost pool? (Round to the nearest whole cent.)
A. $30.00
B. $26.50
C. $24.00
D. $27.00
Answer: B
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Watson Company has 5,000 shares of $5 par, 3% preferred stock outstanding, and 25,000 shares of $2 par common stock outstanding. The preferred stock is cumulative and no dividends have been paid for the past two years. If the company wishes to distribute $2 per share to the common stockholders, what is the total amount of dividends that must be paid in the current year?
a. $ 2,250 b. $50,000 c. $50,750 d. $52,250
An example of a customer-based assessment of competition is:
A) naive extrapolation. B) market segmentation. C) substitution in use. D) perceptual mapping.
Bond discount should be presented in the financial statements of the issuer as a(n)
a. adjunct liability. b. contra liability. c. deferred charge. d. contra asset.
Increased earnings
a. are reflected as an increase in cash flow. b. do not always generate an increase in cash flow. c. result in a decrease in cash flow only if dividends are paid. d. are the starting point for the direct method cash flow statement. e. include none of the above.