Davis Corporation is preparing its Manufacturing Overhead Budget for the fourth quarter of the year. The budgeted variable manufacturing overhead rate is $1.70 per direct labor-hour; the budgeted fixed manufacturing overhead is $116,000 per month, of which $30,000 is factory depreciation.If the budgeted direct labor time for November is 7,000 hours, then the total budgeted cash disbursements for manufacturing overhead for November must be:
A. $97,900
B. $41,900
C. $86,000
D. $127,900
Answer: A
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As product costs are incurred in the manufacturing process, they are accounted for as assets and reported on the balance sheet as inventory
Indicate whether the statement is true or false
The predominant approach to employee compensation is
A. pay-for-performance. B. competence-based pay. C. job-based pay. D. individual contract.
A(n) ________ is the accumulation of individual probabilities of a distribution
Fill in the blanks with correct word
A company currently sells 75,000 units annually. At this sales level, its EBIT is $4 million, and its degree of total leverage is 2.0. The firm's debt consists of $15 million in bonds with a 9.5% coupon. The company is considering a new production method which will entail an increase in fixed costs but a decrease in variable costs, and will result in a degree of operating leverage of 1.375. The president, who is concerned about the stand-alone risk of the firm, wants to keep the degree of total leverage at 2.0. If EBIT remains at $4 million, what dollar amount of bonds must be retired to accomplish this? Donotroundintermediatecalculations.
A. $2,118,421.05 B. $1,381,578.95 C. $1,842,105.26 D. $1,528,947.37 E. $2,192,105.26