Whether a cost behaves as a fixed cost or as a variable cost depends upon the:
A. significance of the dollar amount of the cost.
B. cost structure of the company.
C. industry.
D. activity based used.
Answer: D
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Nelson Manufacturing applies overhead to its manufactured products based on direct labor hours. Last year, total overhead costs were estimated to be $108,900. Actual overhead costs ended up totaling $115,000 when 10,000 direct labor hours were actually worked. At the end of the year, overhead was overapplied by $6,000. What was the predetermined overhead rate that must have been used during the
year? A) $11.50 per direct labor hour B) $10.60 per direct labor hour C) $12.10 per direct labor hour D) $10.90 per direct labor hour
Explain why a sampling schedule is important in a work sampling study
What will be an ideal response?
A subpoena is an order by the court served on
a. the attorney to produce the defendant in court. b. a person to appear and testify as a witness in a legal action. c. the warden of a jail to produce the prisoner in court. d. a person to be examined for possible jury duty.
According to the text, the Competitive Equality in Banking Act of 1987
A) turned the thrift industry around by providing the necessary funds to close the "zombie S&Ls." B) lowered the cost of bailing out the S&Ls by quickly closing "zombie S&Ls" before they could cause other thrifts to fail. C) failed to provide the funds necessary to close ailing S&Ls, and actually encouraged regulators to continue to pursue regulatory forbearance. D) did both A and B of the above.