Claybrooks Corporation has two manufacturing departments-Casting and Assembly. The company used the following data at the beginning of the year to calculate predetermined overhead rates: CastingAssemblyTotalEstimated total machine-hours (MHs) 3,000 2,000 5,000Estimated total fixed manufacturing overhead cost$17,700$5,800$23,500Estimated variable manufacturing overhead cost per MH$1.50$2.20 Assume that the company uses a plantwide predetermined manufacturing overhead rate based on machine-hours. That predetermined manufacturing overhead rate is closest to:
A. $6.48
B. $7.40
C. $4.70
D. $3.70
Answer: A
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A. Only statement I is correct. B. Only statement IV is correct. C. Statements II and III are correct. D. Statements I and IV are correct. E. Statements I and III are correct.
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The basic building block of any communications facility is the
transmission line. Indicate whether the statement is true or false
Lettuca Inc. generated a $77,050 ordinary loss from operations this year. It also recognized $5,920 recaptured ordinary income, $55,000 net Section 1231 loss, and $7,840 net capital loss on the sale of assets. Compute Lettuca's net operating loss.
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