Answer:
B. Each product, or job, uses the department to a different extent.
Explanation:
Departmental overhead rates uses a standard charge that is based on produced units attributed to a department.
Costs are applied with high precision.
When this model is used, the standard rate is multiplied by the number of units produced in the department, so there is no over allocation of resources.
For example if we consider the hours a machine operates. With a standard rate of $10 per hour, machine operation of 6 hours will give $10* 6 hours= $60
Answer:
Marjam's entry to record this transaction should include a c. Credit to Long-Term investments for $63,600.
Explanation:
Marjam investment in MacKenzie is a Financial Asset. A financial Asset is an obligation to receive cash.
Marjam will be paid a cash dividend based on the share of ownership it has in MacKenzie.
Share of Ownership = 63,600 shares/ 120,000 outstanding shares
= 53%
<u>Marjam's entry to record cash dividends is as follows </u>
Dividend = $120,000 × 53%
= $63,600
Debit : Bank $63,600
Credit : Long-Term investments $63,600
(a)As per Du-Pont equation:
Return on Assets (ROA) = Net profit margin * Total assets turnover
9.8% = 12.25% * total asset turnover
Total asset turnover = 0.098/0.1225 =0.8
Total asset turnover = 0.80
(b) As per Du-Pont equation:
ROE = Net profit margin * total asset turnover 8 * Equity Multiplier
18.25% = 12.25%*0.8* Equity Multiplier
Equity multiplier = 0.1825/(0.1225*0.8) = 1.86
Equity multiplier = 1.86 times
