The overhead rate for Machine Setups is $100 per setup. Products A and B have 80 and 60 setups, respectively. The overhead assigned to each product is:
A.Product A $8,000, Product B $8,000.
B. Product A $8,000, Product B $6,000.
C. Product A $6,000, Product B $6,000.
D. Product A $6,000, Product B $8,000.
Answer: B
Accounting
- Per U.S. GAAP, which of the following statements is correct regarding accounting changes that result in financial statements that are, in effect, the statements of a different reporting entity?
- Under U.S. GAAP, a transaction that is unusual in nature and infrequent in occurrence should be reported separately as a component of income:
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- During Year 2, Orea Corp. decided to change from the FIFO method of inventory valuation to the weighted average method. Inventory balances under each method were as follows:
- Lore Co. changed from the cash basis of accounting to the accrual basis of accounting during the current year. The cumulative effect of this change should be reported in Lore's current year financial statements as a:
- In open market transactions , Gold Corp. simultaneously sold its long-term investment in Iron Corp. bonds and purchased its own outstanding bonds. The broker remitted the net cash from the two transactions. Gold's gain on the purchase of its own bonds exceeded its loss on the sale of the Iron bonds. Assume the transaction to purchase its own outstanding bonds is unusual in nature and has occurred infrequently. Under U.S. GAAP , Gold should report the:
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- How should the effect of a change in accounting principle that is inseparable from the effect of a change in accounting estimate be reported?
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- Scott Corporation sold a fixed asset used for operations for greater than its carrying amount. Scott should report the transaction in the income statement using the:
- According to the IASS conceptual framework, which of the following is an underlying assumption of financial statement preparation and presentation?
- According to the IASB conceptual framework, the usefulness of providing information in the financial statements is subject to the constraint of:
- Which of the following is not defined in FASB Statement of Financial Accounting Concepts Number 7 as one of the five elements of present value (or economic value) measurement used to establish the value of assets or liabilities using cash flow information?
- According to the FASB conceptual framework, which of the following relates to both relevance and reliability?
- According to the FASB conceptual framework, which of the following statements conforms to the realization concept?
- In order to calculate bond premium or discount, you need four pieces of information ?
- True or False? - The allowance method is required by the internal Revenue Service for tax reporting the direct write off method is required by GAAP.
- Which payroll taxes is withheld from an employee's paycheck?
- True or False? - Interest Rates are generally expressed as annual Rates ( over 12 months)
- True or False? - If you Issue a bond at a premium, you receive more than face value
- What is the formula to calculate basic interest?
- Due to the importance of earnings per share information, it is required to be reported by all Public Companies Nonpublic Companies
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