Use the Tables for the Question(s)below

question 42

Multiple Choice

Use the tables for the question(s) below.
Pro Forma Income Statement for Ideko,2005-2010 Pro Forma Balance Sheet for Ideko,2005-2010
-Assuming that Ideko has an EBITDA multiple of 8.5,then the continuation EV/Sales ratio of Ideko in 2010 is closest to:

• A)1.7.
• B)1.9.
• C)1.6.
• D)1.8.

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Definitions:

Variable Overhead Rate Variance

The difference between the actual variable overhead cost incurred during a period and the standard cost that should have been incurred based on the actual activity of the period.

Direct Labor-Hours

A measure of the total hours worked by employees directly involved in manufacturing a product or providing a service.

Overhead Budget

A financial plan estimating the expected indirect costs required to support operational activities within a certain period.

Variable Overhead Costs

Costs that fluctuate with production volume, such as utilities or raw materials.