National Inc

question 57

Multiple Choice

National Inc. manufactures two models of CMD that can be used as cell phones, MPX, and digital camcorders.Using the firm's volume-based costing, applied factory overhead per unit for the High F model is (rounded to the nearest cent) :

• A)$61.32.
• B)$65.43.
• C)$43.42.
• D)$45.99.
• E)$54.04.

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Definitions:

Inventory

Items that a company holds for the purpose of selling in the normal course of business, or materials used in the production of goods to be sold.

Dividends

Funds disbursed by a company to its stockholders, typically from earnings.

Consolidation Worksheet

A tool used in preparing consolidated financial statements that combines the financial information of a parent company and its subsidiaries.

Goodwill Impairment

A charge that companies record when the book value of goodwill on their balance sheets exceeds its estimated fair value, indicating the asset has decreased in value.