On January 1, Year 1, Milton Manufacturing Company purchased equipment with a list price of $88,000. A total of $4,000 was paid for installation and testing. During the first year, Milton paid $6,000 for insurance on the equipment and another $2,200 for routine maintenance and repairs. Milton uses the units-of-production method of depreciation. Useful life is estimated at 100,000 units, and estimated salvage value is $8,000. During Year 1, the equipment produced 13,000 units. What is closest to the amount of depreciation for the year?
A. $11,960
B. $12,740
C. $11,700
D. $10,920
Answer: D
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Bachrodt Corporation uses activity-based costing to compute product margins. Overhead costs have already been allocated to the company's three activity cost pools--Processing, Supervising, and Other. The costs in those activity cost pools appear below: Processing$21,600Supervising$3,700Other$10,700Processing costs are assigned to products using machine-hours (MHs) and Supervising costs are assigned to products using the number of batches. The costs in the Other activity cost pool are not assigned to products. Activity data appear below MHs (Processing)Batches (Supervising)Product Y73,700400Product V06,300600Total10,0001,000Finally, sales and direct cost data are combined with Processing and Supervising costs to determine product margins. Product Y7Product V0?Sales
(total)$102,200$78,900?Direct materials (total)$40,800$39,100?Direct labor (total)$47,200$22,300?What is the product margin for Product Y7 under activity-based costing? A. $6,208 B. $14,200 C. $4,728 D. -$3,800
Wanderlust gave a security interest in his Conestoga wagon to Iowa Bank who perfected its security interest by filing a financing statement with the appropriate officials in Iowa. Five months later, Wanderlust hit the trail again, moving to Montana. If Iowa Bank wants to continue its perfected interest in the Conestoga wagon, it should
a. file a continuation statement for another five years in Iowa before Wanderlust moves on. b. re-perfect by filing a financing statement in the appropriate place in Montana, according to Montana law, within four months of Wanderlust's entering Montana. c. repossess the Conestoga wagon. d. file a continuation statement for another four months in Iowa before Wanderlust moves on.
Sensitivity analysis is a technique for systematically changing parameters in a model to determine the effects of such changes
Indicate whether the statement is true or false
_____ refers to Federal Reserve decisions that shape the economy by influencing interest rates and the supply of cash.
A. Fiscal policy B. Monetary policy C. Revenue policy D. Deficit policy