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The management of Keeter Corporation would like to investigate the possibility of basing its predetermined overhead rate on activity at capacity. The company's controller has provided an example to illustrate how this new system would work. In this example, the allocation base is machine-hours and the estimated amount of the allocation base for the upcoming year is 97,100 machine-hours. In addition, capacity is 101,000 machine-hours and the actual level of activity for the year is 96,300 machine-hours. All of the manufacturing overhead is fixed and is $9,086,618 per year. For simplicity, it is assumed that this is the estimated manufacturing overhead for the year as well as the manufacturing overhead at capacity. It is further assumed that this is also the actual amount of manufacturing overhead for the year.
If the company bases its predetermined overhead rate on capacity, the predetermined overhead rate is?
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Prepare the entry to record Poulter's investment in the partnership, assuming the equipment has a fair value of $19,500.
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which accounting process is the recognition or non-recognition of business activities as accountable events?
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What is the predetermined office overhead rate per billable labor hour?
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Larken Company's records show the following for the month of January: Total expenses for January were:
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No accrual entries have been made for the vacations. No over-time premium and no bonuses were paid during the period. Prepare the appropriate adjusting entry for vacations earned but not taken in 2011.
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