Saha Company Had Profit of $ 1,020,000 for the Year

question 36

Essay

Saha Company had profit of $ 1,020,000 for the year ended December 31, 2021. At the beginning of the year, there were 300,000 common shares authorized, and 47,000 shares issued. In addition, during 2021, the company declared a dividend of $ 7 per share on its 10,000 preferred shares and issued 50,000 common shares on October 1.
Instructions
Calculate earnings per share for the year ended December 31, 2021.

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Definitions:

Overhead Applied

The assigning of overhead costs to goods produced based on a predetermined rate or basis such as machine hours or labor hours.

Activity-Based Costing

An accounting technique that tags and apportions the costs of organizational activities to every product and service in line with their real consumption.

Activity Rate

The predetermined rate used to allocate overhead costs to products or services based on a specific activity measure, such as machine-hours or labor-hours.

Labor-Related Activity

Activities or tasks that directly involve or are associated with the workforce's efforts in the production process or service delivery.