Reference no: EM13914538

5.Pilgrim Company applies overhead on the basis of machine hours. Given the following data, compute overhead applied and the under- or overapplication of overhead for the period:

Estimated annual overhead cost   $1,200,000

Actual annual overhead cost   $1,150,000

Estimated machine hours   300,000

Actual machine hours   280,000

  $1,200,000 applied and $30,000 overapplied.

  $1,120,000 applied and $30,000 underapplied.

  $1,150,000 applied and neither under- nor overapplied.

  $1,120,000 applied and $30,000 overapplied.

8.The production cost report shows both quantities and costs. Costs are reported in three sections: (1) costs accounted for, (2) unit costs, and (3) costs charged to department. The sections are listed in the following order:

 (2), (3), (1).

(1), (2), (3).

(1), (3), (2).

(2), (1), (3).

20.The concept of significant influence must be satisfied before which accounting method can be used by an investor?

Consolidated financial statements.

All of these answers are correct.

Cost.

Equity.

21.Which of the following pairs of terms in the area of financial statement analysis are synonymous?

Horizontal - Trend

Horizontal - Ratio

Ratio - Trend

Vertical - Ratio

24.In accounting for available-for-sale securities, the Unrealized Loss on Available-for-Securities account should be classified as a:

contra asset on the balance sheet.

liability on the balance sheet.

deduction in the stockholders' equity section of the balance sheet.

loss on the income statement.