Activity-based costing refines the cost allocation process even more than traditional allocation costing systems

On January 1, 2016, Bratios Company purchased equipment and signed a six-year mortgage note for $97,000 at 15%

The note will be paid in equal annual installments of $25,631, beginning January 1, 2017. On January 1, 2017, the journal entry to record the first installment payment will include a ________. (Round your answer to the nearest whole number.) A) debit to Mortgage Payable for $25,631 B) debit to Interest Expense for $14,550 C) credit to Cash for $11,081 D) credit to Mortgage Payable for $97,000

Under learning curve theory, with a learning rate of 70 percent, the:

A) time to produce the second unit will be 70 percent less than the time to produce the first unit. B) time to produce the second unit will be 30 percent less than the time to produce the first unit. C) cumulative average time per unit after producing the first 100 units will be 70 percent less than the average time per unit of the first 50 units. D) average time per unit will be cut in half for every 70 units.