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Cribb Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the estimated direct labor-hours were 17,900 hours and the total estimated manufacturing overhead was $341,890. At the end of the year, actual direct labor-hours for the year were 16,700 hours and the actual manufacturing overhead for the year was $336,890. Overhead at the end of the year was:
$22,920 underapplied
$17,920 overapplied
$17,920 underapplied
$22,920 overapplied
Evaluate the operating income that would result from the production manager's plan to manufacture 96,000 units at each plant.
Sand, Mell, and Rand are partners who share incomes and losses in a 1:4:5 ratio. After lengthy disagreements among the partners and several unprofitable periods, the partners decided to liquidate the partnership. Assume that if any capital deficits e..
Suppose you were starting a graphics printing business. It will cost you $2000 for a computer and commercial ink jet printer. What is your breakeven? You want to consider a color laser printer instead of an ink jet. The fixed costs would be $4000 and..
Prepare an accrual-basis income statement for the 6 months ended April 30, 2012 and prepare the April 30, 2012, classified balance sheet.
Net present value, profitability index (LO 3) Bill Zimmerman is evaluating two new business opportunities. Each of the opportunities shown below has a ten-year life. Bill uses a 10% discount rate.
Thoma Corporation's sales commissions (a cost that is variable with respect to sales volume) total $448,000. To the nearest whole dollar, illustrate what should be the total sales commissions at a sales volume of 33,200 units?
Top management at radio 2UE ordered the station's broadcaster not to make derogatory comments about McDonald's on air or the station would lose its $170,000 advertising account with the fast-food chain, according to a leaked in internal memo.
Which methods of evaluating a capital investment project ignore the time value of money and the first line item in the operating activities section of a spreadsheet for a statement of cash flows prepared using the indirect method
XYZ Company uses a job order costing system and has established a pre-determined overhead rate of 150% of direct labor cost. Job #231 was charged with direct materials of $20,000 and with overhead of $18,000. Assume XYZ Company prices its jobs at 40%..
the production department has been investigating possible ways to trim total production costs. one possibility
Dobson Contractors is considering buying equipment at a cost of $72,000. The equipment is expected to generate cash flows of $15,400 per year for nine years and can be sold at the end of nine years for $5,700. The discount rate is 11%. Assume the equ..
Evaluate the necessary requirements on the basis - Find Cranberry Corporation's addition to retained earnings with a 10% increase in sales? Assume the dividend payout ratio and profit margin remains fixed.
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