Which of the following decisions will most likely involve the use of activity-based management?
A) decisions related to the financing of an investment using equity or debt
B) decisions related to the expansion operations in a particular geographic location
C) decisions related to the pricing of a product
D) decisions related to the payment of dividends
C
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The ________ structure involves the assignment of operational responsibility of the different areas of the world to line managers
A) ethnocentric B) geographic C) integrated D) rationalistic
Davis Corporation is preparing its Manufacturing Overhead Budget for the fourth quarter of the year. The budgeted variable manufacturing overhead rate is $1.70 per direct labor-hour; the budgeted fixed manufacturing overhead is $116,000 per month, of which $30,000 is factory depreciation.If the budgeted direct labor time for December is 4,000 hours, then the predetermined manufacturing overhead per direct labor-hour for December would be:
A. $30.70 B. $23.20 C. $1.70 D. $9.20
Gomez Company purchases a piece of equipment on Jan. 2, 2014, for $30,000. The equipment has an estimated life of eight years or 50,000 units of production and an estimated residual value of $3,000. Lester uses a calendar fiscal year. The entry to record the amount of depreciation for 2014, using the straight-line method, is
A) debit to Depreciation Expense, 3,750; credit to Cash, 3,750 B) debit to Depreciation Expense, 3,375; credit to Accumulated Depreciation, 3,375 C) debit to Depreciation Expense, 2,500; credit to Accumulated Depreciation, 2,500 D) debit to Accumulated Depreciation, 2,250; credit to Cash, 2,250
A standard cost card is prepared before developing manufacturing standards for direct materials, direct labor, and factory overhead
Indicate whether the statement is true or false