Use the Following Information for Questions

question 26

Multiple Choice

Use the following information for questions. The following data are provided for Croatia Corp.'s last two fiscal years: Shareholders' Equity 15- 27 Additional information: On May 1, 2015, 6,000 common shares were issued.Although dividends had been declared regularly up to December 31, 2014, preferred dividends were NOT declared during 2015.The market price of the common shares was $100 at December 31, 2015.
-The price earnings ratio for 2015 is

• A)12.22.
• B)13.76.
• C)14.99.
• D)15.55.

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Definitions:

Overapplied Overhead

A situation where the allocated overhead costs exceed the actual overhead costs incurred.

Underapplied Overhead

The situation where the allocated manufacturing overhead cost is less than the actual overhead cost incurred.

Manufacturing Overhead

Covers all indirect costs associated with manufacturing a product, including expenses such as rent for the manufacturing space, utilities, and salaries for employees not directly producing goods.

T-Accounts

A visual representation of accounts used in double-entry bookkeeping, showing debits on the left and credits on the right.