Use the Following Information to Answer the Question(s)below

question 20

Multiple Choice

Use the following information to answer the question(s) below.
Pfadt Inc.had $600,000 par of 8% bonds payable outstanding on January 1,2013 due January 1,2017 with an unamortized discount of $12,000.Senat is a 90%-owned subsidiary of Pfadt.On January 2,2013,Senat Corporation purchased $150,000 par value of Pfadt's outstanding bonds for $152,000.The bonds have interest payment dates of January 1 and July 1.Straight-line amortization is used.
-Bonds Payable appeared in the December 31,2013 consolidated balance sheet of Pfadt Corporation and Subsidiary in the amount of

• A)$398,925.
• B)$441,000.
• C)$443,250.
• D)$450,000.

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Definitions:

Budgeted Overhead

The estimated costs for running a business, not directly tied to production but expected to occur within a specific budget period.

Actual Overhead Costs

The real expenses incurred in the manufacturing process that are not directly tied to production, such as utilities and rent for factory space.

Overhead Variances

Differences between the actual overhead costs incurred and the standard costs for the overheads that were budgeted for a period.

Controllable

Controllable usually refers to expenses or costs that can be managed or influenced by decisions made by a company or an individual.