When the rate of return on total assets ratio is greater

Reference no: EM13483395

1 - When a company changes from one acceptable accounting method to another, the change is reported

A -in the statement of retained earnings, as a correction to the beginning balance.

B -in the income statement, below income from continuing operations.

C -in the income statement, above income from continuing operations

D -through a retroactive restatement of prior period earnings.

2 - Blackwelder Factory produces two similar products - small lamps and desk lamps. The total plant overhead budget is $640,000 with 400,000 estimated direct labor hours. It is further estimated that small lamp production will require 275,000 direct labor hours and desk lamp production will need 125,000 direct labor hours. Using the single plantwide factory overhead rate with an allocation base of direct labor hours, how much factory overhead will be allocated to the small lamp production if the actual direct hours for the period is 290,000?

A - $200,000

B - $320,000

C- $440,000

D - $464,000

3 - The Kaumajet Factory produces two products - table lamps and desk lamps. It has two separate departments - finishing and production. The overhead budget for the finishing department is $550,000, using 500,000 direct labor hours. The overhead budget for the production department is $400,000 using 80,000 direct labor hours. If the budget estimates that a table lamp will require 2 hours of finishing and 1 hours of production, what is the total amount of factory overhead to be allocated to table lamps using the multiple production department factory overhead rate method with an allocation base of direct labor hours, if 75,000 units are produced?

A - $368,250

B - $540,000

C - $832,500

D - $475,000

4 - When the rate of return on total assets ratio is greater than the rate of return on common stockholders' equity ratio, the management of the company has effectively used leverage. True or False

Reference no: EM13483395

Questions Cloud

Prepare schedules for 1 expected collections from customers : colter company prepares monthly cash budgets. relevant data from operating budgets for 2014

If inez is in the 35 bracket how much income tax results : during the year inez had following transactions involving capital gains gain on the sale of unimproved land purchased 2

Today is your birthday and you are now 37 you are planning : today is your birthday and you are now 37 you are planning your retirement and have decided that you can save 8000.00

What is the expected return on equity under each current : the rentz corporation is attempting to determine the optimal level of current assets for the coming year. management

When the rate of return on total assets ratio is greater : 1 - when a company changes from one acceptable accounting method to another the change is reporteda -in the statement

Half of grunewalds customers paid on the 10th day and took : grunewald industries sells on terms of 210 net 40. gross sales last year were 4562500 and accounts receivable averaged

Assume that flip uses a periodic inventory system and that : question 3 suggested time 15 minutes 15 pointsthe following information is available for flip companybeginning

Determine the expected annual sales for the sales budget : 1.as part of the initial investment a partner contributes equipment that had a cost of 50000 and accumulated

What role does the cost of capital play in the overall : 1.what role does the cost of capital play in the overall financial decision making of the firms top managers?2.why do

User Account

All Pages