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Table 4-2
the Ledger Accounts for Alice's Rentals Include the Following

question 70

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Table 4-2
The ledger accounts for Alice's Rentals include the following normal balances as of December 31, 2019:  Accumulated amortization $2,000 Cash 7,300 Equipment 15,000 Alice Normanson, Capital 9,300 Alice Normanson, Withdrawals 2,200 Prepaid rent 3,600 Accounts payable 7,800 Supp lies 1,200 Unearned revenue 1,600 Notes payable (due Dec. 31, 2023)  7,500\begin{array} { | l | r | } \hline \text { Accumulated amortization } & \$ 2,000 \\\hline \text { Cash } & 7,300 \\\hline \text { Equipment } & 15,000 \\\hline \text { Alice Normanson, Capital } & 9,300 \\\hline \text { Alice Normanson, Withdrawals } & 2,200 \\\hline \text { Prepaid rent } & 3,600 \\\hline \text { Accounts payable } & 7,800 \\\hline \text { Supp lies } & 1,200 \\\hline \text { Unearned revenue } & 1,600 \\\hline \text { Notes payable (due Dec. 31, 2023) } & 7,500 \\\hline\end{array}
-Referring to Table 4-2, what is the current ratio for Alice's Rentals?

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Definitions:

Fixed Manufacturing Overhead

Costs that do not vary with production volume, such as rent, salaries of permanent staff, and depreciation of factory equipment.

Predetermined Overhead Rate

A rate calculated before the accounting period begins, used to allocate manufacturing overhead costs to individual units of production based on a certain activity base.

Variable Manufacturing Overhead

Costs that vary with production volume, such as indirect materials and utilities, related specifically to the manufacturing process.

Labor-Hours

The total number of working hours clocked by employees within a specific period, reflecting the labor input.

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