Fortune Company uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs.   On October 1, the estimates for the month were:  Manufacturing overhead$17,000Direct labor-hours 13,600During October, the actual results were:  Manufacturing overhead$18,500Direct labor-hours 12,000The cost records for October will show:

A. Underapplied overhead of $3,500.
B. Overapplied overhead of $3,500.
C. Underapplied overhead of $1,500.
D. Overapplied overhead of $1,500.


Answer: A

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Macmillan Corporation has provided the following financial data:Balance SheetDecember 31, Year 2 and Year 1AssetsYear 2Year 1Current assets:        Cash$156,000 $120,000   Accounts receivable, net 268,000  280,000   Inventory 146,000  130,000   Prepaid expenses 20,000  20,000 Total current assets 590,000  550,000 Plant and equipment, net 732,000  760,000 Total assets$ 1,322,000 $ 1,310,000    Liabilities and Stockholders' Equity  Current liabilities:        Accounts payable$175,000 $180,000   Accrued liabilities 46,000  50,000   Notes payable, short term 80,000  80,000 Total current liabilities 301,000  310,000 Bonds payable 190,000  190,000 Total liabilities 491,000  500,000 Stockholders' equity:        Common

stock, $5 par value 450,000  450,000   Additional paid-in capital 70,000  70,000   Retained earnings 311,000  290,000 Total stockholders' equity 831,000  810,000 Total liabilities & stockholders' equity$ 1,322,000 $ 1,310,000 Income Statement-Year 2For the Year Ended December 31, Year 2Sales (all on account)$1,390,000 Cost of goods sold 830,000 Gross margin 560,000 Operating expenses 500,615 Net operating income 59,385 Interest expense 16,000 Net income before taxes 43,385 Income taxes (35%) 15,185 Net income$  28,200 Dividends on common stock during Year 2 totaled $7,200. The market price of common stock at the end of Year 2 was $3.69 per share.The company's current ratio at the end of Year 2 is closest to: A. 1.96 B. 0.45 C. 0.83 D. 0.37

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Fill in the blank(s) with the appropriate word(s).

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Which of these principles/qualities are included in laying the groundwork for sound diversity management ?

a. Ambition b. Humor c. Adaptability d. Humanity

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