A company has two products: A and B. It uses activity-based costing and has prepared the following analysis showing budgeted cost and activity for each of its three activity cost pools: Budgeted ActivityActivity Cost PoolBudgeted CostProduct AProduct BActivity 1$87,000 3,000 2,800 Activity 2$62,000 4,500 5,500 Activity 3$93,000 2,500 5,250 Annual production and sales level of Product A is 34,300 units, and the annual production and sales level of Product B is 69,550 units. What is the approximate overhead cost per unit of Product A under activity-based costing?
A. $2.00
B. $2.33
C. $10.28
D. $15.00
E. $3.00
Answer: E
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A draft is payable "to the order of Joe Jones or to bearer." Sally finds it and demands payment. Should the drawer pay Sally?
A) No, unless Joe Jones' name is crossed off B) No, unless "bearer" is handwritten C) Yes, an instrument made payable both to order and to bearer is payable to bearer D) Yes, since the instrument is ambiguous, Joe Jones has no right to payment and only the bearer has the right to demand payment
Which of the following determines what the annual interest payment on a bond will be?
A) The par value of the bond B) The maturity date of the bond C) The coupon rate of the bond D) All of the above are correct. E) Only A and C are correct.
Choose the incorrect answer. In completing a Form W-4, employees may claim extra allowances:
a. If they are paying alimony. b. If they have tax credits. c. If they expect to have large amounts of itemized deductions. d. If they have high levels of interest and dividend income.
An IRS letter ruling might determine that an employee's compensation is unreasonable in amount.
Answer the following statement true (T) or false (F)