Folson Company is planning to produce 4,250,000 speakers for the coming year. Actual production was 4,000,000 speakers. Each speaker requires 0.80 direct labor hours per unit. Predetermined overhead rates are calculated using expected production, measured in direct labor hours. The budgeted variable overhead for the coming year is $680,000. The actual variable overhead incurred was $714,000. The
applied variable overhead for the year is:
A) $800,000.
B) $714,000.
C) $640,000.
D) $680,000.
E) none of these.
C
Business
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The revenue is $40,000, the cost of goods sold is $26,000, the selling, general and administrative expenses are $7,000, interest expense is $2,000, and depreciation is $3,000. What is the EBIT?
A) $2,000 B) $4,000 C) $7,000 D) $14,000
Business
Because most of the capital costs are picked up by the franchisor, the franchise model enables a
firm to grow rapidly. Indicate whether the statement is true or false
Business