Pinnini Co

question 62

Multiple Choice

Pinnini Co. uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. Last year, Pinnini Company incurred $225,000 in actual manufacturing overhead cost. Overhead was overapplied $14,500 for the year. If the predetermined overhead rate was $5.00 per direct labor-hour, how many hours did the company work during the year?

• A)45,000 hours
• B)47,900 hours
• C)42,100 hours
• D)44,000 hours

Understand the importance of liquidity and its impact on a firm’s operations.

Grasp the concept of financial leverage and its effects on a firm's capital structure.

Calculate and interpret operating cash flow.

Understand the significance of tax rates in financial decision-making.

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Definitions:

FMV

Fair Market Value is an estimate of the market value of a property or asset, based on what a knowledgeable, willing, and unpressured buyer would likely pay to a knowledgeable, willing, and unpressured seller.

§179 Expense

A section of the U.S. tax code that allows a business to deduct the full purchase price of qualifying equipment or software within the tax year.

Business Assets

Economic resources or items of value owned by a company that are expected to provide future benefits or profits.

Bulldozer

A heavy, tractor-like vehicle with a large, metal plate used to push large quantities of soil, sand, rubble, or other such material during construction or conversion work.