Answer:
The correct answer is option (b).
Explanation:
According to the scenario, computation of the given data are as follows:
first we calculate the predetermined OH, then
Predetermined OH rate = Estimated Manufacturing OH Cost ÷ Estimated Direct Labor Hours
= $451,140 ÷ 61,800
= 7.3
So, Applied MOH = 60,500 × 7.3 = $441,650
So, Underapplied OH = Actual MOH - Applied MOH
= $532,000 - $441,650
= $90,350 (under applied)
<span>Salary is the correct answer. </span>
Answer:B -
Explanation:Depreciation is added back as an adjustment to the net income in the operating activities section.
Answer:
The company’s cash flows from operating activities was a cash inflow of $5,000
Explanation:
Cash at the end of the year = Cash at the beginning of the year + Net cash inflows from investing activities + Net cash inflows from financing activities + Net cash inflows from operating activities
Therefore,
Net cash inflows from operating activities = Cash at the beginning of the year + Net cash inflows from investing activities + Net cash inflows from financing activities - Cash at the end of the year = $340,000 + $40,000 + $45,000 - $420,000 = $5,000 >0
The company’s cash flows from operating activities was a cash inflow of $5,000
