Which of the following provides an explanation of why the variable overhead rate is separated from the fixed overhead rate in standard costing?
a. There is no justifiable reason; their separation is merely to simplify entries.
b. Both calculations divide by the same direct labor hours, but the numerator is different for each calculation.
c. The variable overhead rate is calculated using actual direct labor hours, whereas the fixed overhead rate is calculated using normal capacity direct labor hours.
d. Different application bases are generally appropriate.
D
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Changes in fair value of securities are reported in the stockholders' equity section of the balance sheet for which type of securities?
a. Marketable equity securities b. Available-for-sale securities c. Trading securities d. Held-to-maturity securities
Your greeting helps you make a positive first impression on new acquaintances.
Answer the following statement true (T) or false (F)
Teehan, Inc., manufactures and sells two products: Product U2 and Product W5. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: Expected ProductionDirect Labor-Hours Per UnitTotal Direct Labor-HoursProduct U24006.02,400Product W52008.01,600Total direct labor-hours 4,000The direct labor rate is $20.40 per DLH. The direct materials cost per unit for each product is given below: Direct MaterialsCost per UnitProduct U2$249.40 Product W5$164.40 The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: EstimatedExpected ActivityActivity Cost PoolsActivity MeasuresOverhead CostProduct U2Product
W5TotalLabor-relatedDLHs$92,1202,4001,6004,000Machine setupssetups 18,4685007001,200Order sizeMHs 202,5473,1002,8005,900 $313,135 If the company allocates all of its overhead based on direct labor-hours using its traditional costing method, the predetermined overhead rate would be closest to: A. $34.33 per DLH B. $78.28 per DLH C. $15.39 per DLH D. $23.03 per DLH
A buyer's counteroffer is automatically rejected when the seller sells to someone else
Indicate whether the statement is true or false