A teenage driver crashes her parents' minivan into an office building, causing $85,000 in damage to the building. The automobile liability insurance limits are 100/250/75. How will the damages be allocated between the driver and the insurance company?
A) The driver will be responsible for $85,000.
B) The driver will be responsible for $75,000, the insurance company for $10,000.
C) The driver will be responsible for $10,000, the insurance company for $75,000.
D) The insurance company will be responsible for $85,000.
Answer: C
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The fire insurance policy on Dullard's home contained a 50 percent coinsurance clause. Dullard's home had a fair market value of $100,000. The face amount of the policy covering the home was $30,000. A hostile fire caused $30,000 worth of damage to the home. To what amount is Dullard entitled?
A. $30,000 B. $100,000 C. $9,000 D. $18,000
There are three shopping locations with 300, 500, and 1,000 square feet of space allocated to lighting accessories
A group of potential customers lives 5 minutes from the first location, 10 minutes from the second location, and 15 minutes from the third location. The retailer estimates the effect of travel time to be 2 . The probability of consumers shopping at location 1 is _____ percent. a. 21 b. 23 c. 45 d. 56
At the beginning of the month, the Painting Department of Skye Manufacturing had 20,000 units in inventory, 70% complete as to materials, and 20% complete as to conversion. The cost of the beginning inventory, $28,650, consisted of $22,400 of material costs and $6,250 of conversion costs. During the month the department started 115,000 units and transferred 120,000 units to the next manufacturing department. Costs added in the current month consisted of $229,600 of materials costs and $540,500 of conversion costs. At the end of the month, the department had 15,000 units in inventory, 40% complete as to materials and 10% complete as to conversion. If Skye Manufacturing uses the weighted average method of process costing, compute the costs per equivalent unit of materials and conversion
respectively for the Painting Department. A. $2.05; $4.60. B. $1.82; $4.45. C. $2.25; $4.65. D. $2.05; $4.45. E. $2.00; $4.50.
Process costing is used to calculate the cost of homogenous goods or services.
Answer the following statement true (T) or false (F)