Acti Manufacturing Corporation Is Estimating the Following Raw Material Purchases

question 174

Multiple Choice

Acti Manufacturing Corporation is estimating the following raw material purchases for the final four months of the year:
At Acti, 40% of raw materials purchases are normally paid for in the month of purchase. The remaining 60% is paid for in the month following the purchase.
-The budgeted direct labor cost per Pod is closest to:

• A) $13.44
• B) $9.60
• C) $7.38
• D) $11.00

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Definitions:

Dividend Yield

An indicator showing the annual amount a corporation distributes as dividends compared to its current share value.

Required Rate

The minimum return that investors expect to earn from an investment to make it worth their while.

Dividends Grow

The increase in the dividend amount paid out by a company to its shareholders over time.

Preferred Stock

A class of ownership in a corporation that has a higher claim on its assets and earnings than common stock, usually with fixed dividends.