The Following Contains Information from the Records of Bourne Engineers

question 126

Multiple Choice

The following contains information from the records of Bourne Engineers and Architects. $$\begin{array} { c } \text { Bourne Engineers and Architects } \\\text { Selected Finarncial Information } \\\text { Decermber 31, 2019 }\\\begin{array} {| l | r| } \hline \text { Current Assets } & \$ 70,000 \\\hline \text { Current Liabilities } & 35,000 \\\hline \text { Long-Term Assets } & 97,000\\\hline \text { Long-Term Liabilities } & 63,000\\\hline \text { Total Revenues } & 55,000 \\\hline \text { Total Expenses } & 36,000\\\hline\end{array}\end{array}$$ Calculate the current ratio.(Round your answer to two decimal places.)

• A) 1.54
• B) 2.08
• C) 0.56
• D) 2.00

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Definitions:

Standard Factory Overhead Rate

A predetermined rate used to allocate expected overhead costs to individual units of product based on a standard cost system.

Machine Hour

A unit of measure representing one hour of work or operation by a machine, used in allocating manufacturing costs.

Normal Capacity

The average production or performance level achievable under normal conditions by a business over a specific period.

Fixed Factory Overhead Volume Variance

A measure in management accounting that analyzes the difference between the budgeted and actual volume of production, affecting fixed overhead costs.