Answer:
C. Significant amounts of indirect costs are allocated using only one or two cost pools.
D. All or most indirect costs are identified as output unit-level costs.
E. Products make diverse demands on resources because of differences in volume, process steps, batch size, or complexity.
F. Products that a company is well suited to make and sell show small profits, whereas products that a company is less suited to produce and sell show large profits.
Explanation:
ABC (activity based costs) method focuses on individual activities as the main cost objects. After it determines the cost of individual activities, it uses them as the basis for assigning costs to products and services. ABC method allocates overhead costs based on the main cost objects.
Answer:
(D) Annual depreciation will be $11000
And book value will be $38000
Explanation:
We have given Kansas purchased equipment for $60000
So Acquisition cost = $60000
Residual value = $5000
We know that annual depreciation is given by
Life time = 5 years
Annual depreciation expense 
Depreciation expense is the same every year under straight-line. Therefore, in 2013 the depreciation expense is $11,000
Book value is given by
Book value = Acquisition Cost - Accumulated Depreciation
= 
The Book Value of the asset is therefore $38,000 after 2 years of service
Answer:
Instructions are listed below.
Explanation:
Giving the following information:
Number of foam cushions to be produced in July 13, 000
Number of foam cushions to be produced in August 12, 000
Number of foam cushions to be produced in September 14, 000
Each cushion requires 2 pounds of the foam used as stuffing. The company has a policy that the ending inventory of foam each month must be equal to 25% of the following month's expected production needs.
Production for August:
Sales= 12,000*2= 24,000
Ending inventory= (14,000*0.25)*2= 7,000
Beginning inventory= (12,000*0.25)*2= 6,000 (-)
Total= 25,000 pounds
Answer:
When interest rate are higher than coupon rate the company may want to purchase the bond in the open market
Explanation:
As the market value of the bond is considered as the present value of the coupon and maturity discounted at market rate a higher rate will make the present value of the bond to decrease therefore, below par. this makes the company a better option to purchase the bond rather than calling if it wants to retire the bonds.
I can't see the full chart
