Use the Following Information for Questions

question 61

Multiple Choice

Use the following information for questions.
On May 1, 2012, Marly Co.issued $500,000 of 7% bonds at 103, which are due on April 30, 2022.Twenty detachable stock warrants entitling the holder to purchase for $40 one share of Marly's ordinary shares $15 par value, were attached to each $1,000 bond.The bonds without the warrants would sell at 96.On May 1, 2012, the fair value of Marly's shares was $35 per share and of the warrants was $2.
-On May 1, 2012, Marly should record bonds payable at

• A)$515,000.
• B)$500,000.
• C)$480,000.
• D)$494,400.

Define the role of direct materials in activity-based costing.

Assess the factors influencing the choice of a cost driver in cost estimation.

Recognize the different classifications of costs in activity-based costing.

Evaluate the implications of volume changes on different types of costs.

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Definitions:

Billable Time

Time spent on tasks or projects for which a customer or client can be billed, typically measured in hours.

Single Time Activity

An action or task that is performed once rather than regularly or repeatedly over time.

Payroll Tax Forms

Official documents used to report employment taxes withheld from employees' paychecks to governmental tax authorities.

Form 940

A tax form used in the United States to report annual Federal Unemployment Tax Act (FUTA) tax details to the Internal Revenue Service (IRS).