Refer to the data on Expected Demand for Weston Gadgets, Inc. For the various demand scenarios, if you applied the Laplace criterion, what is the lowest payoff?
a. $46.00 million
b. $20.67 million
c. $43.20 million
d. $33.20 million
b. $20.67 million
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Heathcote Corporation is a manufacturer that uses job-order costing. The company closes out any overapplied or underapplied overhead to Cost of Goods Sold at the end of the year. The company has supplied the following data for the just completed year: Estimated total manufacturing overhead at the beginning of the year$546,000 Estimated direct labor-hours at the beginning of the year 42,000direct labor-hours Results of operations: Actual direct labor-hours 47,000direct labor-hoursManufacturing overhead: Indirect labor cost$152,000 Other manufacturing overhead costs incurred$454,000 Cost of goods manufactured$1,569,000 Cost of goods sold (unadjusted)$1,458,000 Manufacturing overhead is overapplied or underapplied by:
A. $5,000 Underapplied B. $5,000 Overapplied C. $186,000 Underapplied D. $186,000 Overapplied
One strategy used by auditors in testing assertions is to perform directional testing to find overstatements or understatements
a. True b. False Indicate whether the statement is true or false
When the seller is rightfully claiming for the buyer's rejection or repudiation, the seller can recover the difference between the contract price and the market price or:
A. half of the cost price. B. whatever the buyer determines in good faith. C. the amount equaling the accident insurance. D. the "profit" the seller lost.
The following budget data are available for Happy Company: Estimated direct labor hours 12,000 Estimated direct dollars $90,000 Estimated factory overhead costs $180,000 Actual direct labor hours 11,500 Actual direct dollars $92,000 Actual factory overhead costs $181,000 If factory overhead is to be applied based on direct labor hours as the cost allocation base for the predetermined overhead
rate, the amount of overhead applied into production is A) $180,000 B) $181,000 C) $172,500 D) $184,000