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Standard fixed overhead rate for the Dempsey Company is $2 per direct labor hour calculated based on 26,000 hour expected capacity. Actual fixed overhead for the month is $51,350. Each unit requires 2 hours of direct labor. Each unit requires 20 minutes of direct labor. If 13,200 units were produced, what was the fixed overhead spending variance?
Classify each of these items as an asset (A), liability (L), or stockholders' equity (SE)., True/False Questions
How much overhead is allocated? What is the over/under absorbed overhead?
Compute the net cash provided by operating activities using the indirect method assuming that net income was $125,000 for the year.
Complete a common-sized income statement, a common-sized balance sheet, and a statement of cash flows for 2010. Interpret your results.
Explain three issues or problems which a company could face when trying to find out the actual cost of the good or service which is to be used in the cost of goods sold.
An owner decides that he wants to go ahead with manufacturing; he must spend $900,000 for the new equipment-Calculate the NPV for this project. Should it be undertaken?
Prepare a statement of cash flows for the year 2010 for Aero Inc.
Which of the following is one of the sound principles for ethical behavior?
Mayberry Gas Corp. sells $200,000 of bonds to private investors. The bonds are due in five years, have an 8% coupon rate, and interest is paid semi-annually. The bonds were sold to yield 6%. What proceeds does Mayberry receive from the investors?
A company paid $37,800 plus a broker's fee of $525 to acquire 8% bonds with a $40,000 maturity value. The company intends to hold the bonds to maturity. The cash proceeds the company will receive when the bonds mature equal:
In 1998, Delores made taxable gifts to her son of property with a FMV of $200,000. In the current year when Delores dies, the property is worth $800,000. The amount included in Delores's estate tax base because of the 1998 gift is:
The Walstore Shoe Market had $1,875,000 of shoe sales and its cost for these shoes was $688,000. In addition, the Shoe Market received $5,000 of corporate bond interest and $6,000 of interest on State of California bonds.
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