Cumberland Fabrication Has $80 Million in Assets and $50 Million

question 11

Multiple Choice

Cumberland Fabrication has $80 million in assets and $50 million in owners' equity.How much does the firm have in liabilities?

• A)$80 million
• B)$50 million
• C)$30 million
• D)$20 million

---

Definitions:

Departmental Predetermined Rates

Specific predetermined overhead rates set for different departments within a company, allowing more accurate product costing.

Machine-Hours

A unit of measurement for tracking the operational time of machines, crucial in determining efficiency and production costs in manufacturing settings.

Overhead Rate

A calculation used in cost accounting to allocate indirect costs to products or services, typically expressed as a percentage or rate per unit of activity.

Predetermined Overhead Rate

A rate used to apply manufacturing overhead to products or job orders, calculated in advance based on estimated costs and activity levels.