Use the Information Below for Focal Point Corp Assume That There Were No Retained Earnings Transactions Other Than

question 51

Multiple Choice

Use the information below for Focal Point Corp.for 2017 and 2018 to answer the following question:
$$\begin{array} { l r } \text { Retained earnings, December } 31,2017 & \$ 300,000 \\\text { Retained earnings, December } 31,2018 & 345,000 \\\text { Dividends payable, December } 31,2017 & 19,000 \\\text { Dividends payable, December } 31,2018 & 29,000 \\\text { Net income-2018 } & 150,000\end{array}$$ Assume that there were no retained earnings transactions other than those dealing with dividends and net income.How much dividends did Focal Point declare during 2018?

• A)$95,000
• B)$105,000
• C)$140,000
• D)$150,000

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Definitions:

Summarized Operations

A condensed presentation of the activities and outcomes of an organization's business operations.

Factory Overhead

All indirect costs incurred during the manufacturing process, excluding direct materials and direct labor expenses.

Direct Labor Cost

Direct labor cost refers to the expense incurred by a company for wages paid to workers directly involved in the production of goods or services.

Overapplied

A situation where the allocated costs in cost accounting exceed the actual costs.