Pearl Inc incurred overhead costs of $65,000 in May, 2014. The overhead applied on the basis of direct labor hours for May was $90,000. The company worked for 500 hours in the month. What is the predetermined overhead rate per direct labor hour?
A) $130 per direct labor hour
B) $180 per direct labor hour
C) $1.38 per direct labor hour
D) $500 per direct labor hour
B
You might also like to view...
Answer the following statements true (T) or false (F)
1. Foregoing the use of an agenda for a work meeting makes it harder for participants to add excessive items and thus helps streamline the meeting. 2. Multicommunicating represents the use of technology to participate in several interactions at the same time. 3. Texting and checking one's e-mail during group meetings has become commonplace and accepted in the workplace. 4. Compensation is the most important factor for Millennials in choosing employment.
What options are available to a firm that has a product in the decline stage of the product life cycle? Briefly discuss each option
What will be an ideal response?
The following information is available for Birch Company at December 31: Money market fund balance$2,790 Certificate of deposit maturing June 30 of next year$10,000 Postdated checks from customers$1,475 Cash in bank account$21,430 NSF checks from customers returned by bank$650 Cash in petty cash fund$200 Inventory of postage stamps$24 U.S. Treasury bill purchased on December 15 and maturing on February 28 of following year$5,000 Based on this information, Birch Company should report Cash and Cash Equivalents on December 31 of:
A. $39,420 B. $41,345 C. $31,345 D. $38,770 E. $29,420
Firms sometimes acquire bonds or capital stock of other entities for their expected returns (through interest, dividends, and price appreciation) without any intent to exert influence or control over the other entity. Which of the following is/are not true?
a. U.S. GAAP and IFRS presume that the acquisition of any amount of bonds, and the acquisition of less than 20% of the voting stock of another entity implies an inability to exert significant influence or control. b. Firms may classify such securities as debt securities held for short-term profit (IFRS uses the term held-for-maturity investments). c. Firms may classify such securities as trading securities (IFRS uses the term financial assets at fair value through profit or loss). d. Firms may classify such securities as securities available for sale (IFRS uses the term available-for-sale financial assets). e. all of the above