Use the Following Information to Answer Questions

question 53

Multiple Choice

Use the following information to answer questions
Poodle Company manufactures two products, Mini A and Maxi B.Poodle's overhead costs consist of setting up machines, $800,000; machining, $2,000,000; and inspecting, $600,000.Information on the two products is:
-Overhead applied to Mini A using traditional costing using direct labour hours is

• A)$1,275,000.
• B)$1,536,000.
• C)$1,670,000.
• D)$1,700,000.

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Definitions:

Stockholders' Equity

Represents the owners' interest in a company, calculated as the difference between total assets and total liabilities.

Paid-In Capital

Paid-in capital is the amount of money investors have contributed to a company in exchange for equity.

Retained Earnings

The portion of net income not distributed to shareholders and instead reinvested in the company or used to pay off debt.

Common Stock

A type of security that represents ownership in a corporation, with voting rights and potential for dividends.