Gilchrist Corporation bases its predetermined overhead rate on the estimated machine-hours for the upcoming year. At the beginning of the most recently completed year, the Corporation estimated the machine-hours for the upcoming year at 79,000 machine-hours. The estimated variable manufacturing overhead was $7.38 per machine-hour and the estimated total fixed manufacturing overhead was $2,347,090. The predetermined overhead rate for the recently completed year was closest to:
A. $36.07 per machine-hour
B. $37.09 per machine-hour
C. $29.71 per machine-hour
D. $7.38 per machine-hour
Answer: B
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The number of times interest charges are earned is computed as:
A) net income plus interest charges, divided by interest charges. B) income before income tax plus interest charges, divided by interest charges. C) net income divided by interest charges. D) income before income tax divided by interest charges.
A taxpayer's home in California is destroyed by wildfires which have been declared a federal disaster. The home's destruction results in a large casualty loss deduction exceeding the taxpayer's income. The taxpayer will be allowed to carry forward a net operating loss due to this personal loss.
Answer the following statement true (T) or false (F)
Unauthorized Indorsements. First National Bank collected debts owed to Rock Island Bedding Co and Berry Industries, Inc, and in turn paid those two firms the amounts collected by remitting checks to them drawn on First National Bank. On several
occasions, Johns, an employee of First National, asked the bank's accounting department to prepare cashier's checks payable to Rock Island Bedding Co and to Berry Industries, Inc The requests did not appear to be irregular, because the bank had been making regular payments to the two firms. Johns, however, forged the payees' indorsements on eighteen of the checks so issued and deposited them into an account at First City Bank of Dallas. Johns fraudulently obtained $903,300 in this way. First City indorsed the checks "P.I.G." (prior indorsements guaranteed) and presented them to First National for payment. First National paid the checks and later recovered from its insurer, Fidelity & Casualty Co Fidelity sought recovery from First City, claiming that Johns's forged indorsements did not authorize First City to pay the checks and that First City should bear the loss. Do you agree? Why or why not?
Bellue Inc. manufactures a single product. Variable costing net operating income was $96,300 last year and its inventory decreased by 2,600 units. Fixed manufacturing overhead cost was $1 per unit for both units in beginning and in ending inventory. What was the absorption costing net operating income last year?
A. $98,900 B. $93,700 C. $2,600 D. $96,300