Swimm Company Allocates Materials Handling Cost to the Company's Two

question 120

Multiple Choice

Swimm Company allocates materials handling cost to the company's two products using the below data: The total materials handling cost for the year is expected to be $72,065. If the materials handling cost is allocated on the basis of direct labor-hours, the total materials handling cost allocated to the prefab barns is closest to:

• A)$16,014
• B)$19,880
• C)$36,890
• D)$36,033

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Definitions:

Annual Dividends

The sum of dividends paid by a company to its shareholders annually, often used to calculate the dividend yield.

Preferred Stock

A class of ownership in a corporation that has a higher claim on assets and earnings than common stock, often paying fixed dividends.

Cost of Preferred Stock

The required rate of return by investors to justify holding a company's preferred stock, often calculated as the dividend per share divided by the current price per share.

Bond Issue

A Bond Issue is the process by which a borrower issues bonds to lenders or investors as a form of debt financing, promising to repay the principal along with interest at a future date.