The Following Data Has Been Collected About a Company's Stockholders

question 99

Multiple Choice

The following data has been collected about a company's stockholders' equity accounts:
$\begin{array}{|l|r|}\hline \text { Common stock } \$ 10 \text { par value } 20,000 \text { shares authorized and } 10,000 \text { shares issued } & \$ 100,000 \\\hline \text { Contributed capital in excess of par value, common stock } & 50,000 \\\hline \text { Retained earnings } & 25,000 \\\hline \text { Treasury stock, } 1,000 \text { shares } & 11,500\\\hline \end{array}$
The treasury shares were all purchased at the same price.
The cost per share of the treasury stock is:

• A)$1.15
• B)$1.28
• C)$11.50
• D)$10.50
• E)$10.00

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Definitions:

Volume Variance

The difference between the budgeted and actual volume of production, affecting the budgeted levels of costs or revenues.

Budgeted

The process of creating a plan for a company's financial operations, encompassing revenue, expenses, and capital usage.

Direct Labor-Hours

A measure of the total hours worked by employees who are directly involved in the manufacturing or production process.

Fixed Manufacturing Overhead

The portion of manufacturing overhead costs that remain constant regardless of the level of production, such as rent and salaries of permanent staff.