Use Information Below to Answer the Following Questions

question 29

Multiple Choice

Use information below to answer the following questions.
Osborne Ltd manufactures a wide range of leather suitcases. The following costs are expected to be incurred by the company during May:
-Refer to the table above. The management accountant at Osborne Ltd wants to revise his estimates and use machine hours as the allocation base to determine the overhead recovery rate. The revised overhead recovery rate (rounded) per machine hour (MH) will be:

• A) $8.75 per MH.
• B) $7.38 per MH.
• C) $9.00 per MH.
• D) $4.88 per MH.

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Definitions:

Investing Activities

Transactions related to the acquisition and disposal of long-term assets and other investments, impacting a firm's capital structure and cash flow.

Long-Term Investments

Assets that a company intends to hold for more than one year, such as stocks, bonds, or real estate.

Statement of Cash Flows

A financial report detailing the impact of variations in balance sheet accounts and income on cash and cash equivalents.

Direct Method

An accounting method used in the cash flow statement to show the specific sources of operating cash receipts and payments, contrasting with the indirect method.