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Problem 1: Buffalo Company has current assets, current liabilities, and long-term liabilities of $10,500, $3,000, and $4,000, respectively at the end of 2017. How much cash can Buffalo use to acquire equipment and retain a current ratio of at least 2.0?
Option 1: $1,000
Option 2: $4,500
Option 3: $4,000
Option 4: $6,000
In 2004, DBC will be submitting a bid for a job that is expected to require $810,000 in direct materials cost, $225,000 in direct labor costs, and 80,000 machine hours. How much overhead should DBC estimated for this job?
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