If Bonds with a Face Value of $200,000 Are Sold

question 74

Multiple Choice

If bonds with a face value of $200,000 are sold at 105, the amount of cash proceeds is:

• A)$209,523.
• B)$200,000.
• C)$190,476.
• D)$210,000.

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Definitions:

Machine Hour

A measure of production time, used as a basis for allocating manufacturing overhead costs to products based on machine usage.

Factory Overhead Rates

A calculation used in manufacturing to allocate indirect costs, like utilities and salaries, to products.

Machine Hours

A measure of the amount of time a machine is operated, used as a basis for allocating manufacturing overhead costs to products.

Direct Labor Hours

The total hours of work directly involved in the production of goods, often used in costing and operational efficiency analysis.