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Norton, Inc

question 250

Short Answer

Norton, Inc. has 10,000 shares of 5%, $100 par value, noncumulative preference shares and 100,000 ordinary shares with a $1 par value outstanding at December 31, 2013, and December 31, 2014. The board of directors declared and paid a $40,000 dividend in 2013. In 2014, $110,000 of dividends are declared and paid. What are the dividends received by the preference and ordinary shareholders in 2014? Norton, Inc. has 10,000 shares of 5%, $100 par value, noncumulative preference shares and 100,000 ordinary shares with a $1 par value outstanding at December 31, 2013, and December 31, 2014. The board of directors declared and paid a $40,000 dividend in 2013. In 2014, $110,000 of dividends are declared and paid. What are the dividends received by the preference and ordinary shareholders in 2014?

Definitions:

Direct Materials Cost

The expense associated with acquiring raw materials that are directly utilized in the manufacture of goods.

Traditional Costing

Traditional costing is an accounting method that allocates manufacturing overhead based on volume-related measures, such as direct labor hours or machine hours.

Production Orders

Instructions for manufacturing a certain number of products, detailing the materials, components, and assembly or production processes required.

Activity-Based Costing

A costing method that assigns overhead and indirect costs to specific activities based on their use or consumption.