The standard capacity of a factory is 9,00 . units per month. Cost and production data follow: Standard application rate for fixed factory overhead for 9,00 . units $2.00 Standard application rate for variable factory overhead for 9,00 . units .50 Actual number of units produced 8,800 Actual factory overhead incurred $22,700 What is the amount of overhead allowed for the actual volume of
production?
a. $22,000
b. $22,400
c. $22,500
d. $22,700
b
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Linking incentives to the organization's profits or stock price exposes employees to a high degree of risk.
Answer the following statement true (T) or false (F)
The allowance method based on the idea that a given percent of a company's credit sales for the period is uncollectible is:
A. Direct write-off method. B. The percent of accounts receivable method. C. The percent of sales method. D. The aging of accounts receivable method. E. Factoring method.
According to the hedging principle, fixed assets should NOT be financed with
A) permanent plus spontaneous financing. B) temporary financing. C) permanent financing. D) equity financing.
Costs that can be eliminated in whole or in part if a particular business segment is discontinued are called:
A. opportunity costs. B. irrelevant costs. C. avoidable costs. D. sunk costs.