Wilf Company Acquired an Additional Class 10 (30% Declining Balance)

question 36

Multiple Choice

Wilf Company acquired an additional Class 10 (30% declining balance) asset for $60,000. The UCC at the beginning of the year was $100,000. CCA in the current year is

• A) $48,000.
• B) $24,000.
• C) $45,000.
• D) $37,500.
• E) $39,000.

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Definitions:

Actual Price

The amount of money exchanged for a good or service in a real-world transaction.

Standard Costs

Predetermined costs calculated for direct materials, labor, and overhead, used as a benchmark to measure performance.

Actual Costs

The real expenses incurred in the production of goods or services, as opposed to estimated or budgeted costs.

Fixed Factory Overhead Volume Variance

The difference between the budgeted and actual fixed overhead costs, attributable to changes in production volume.