Financial Statements for Orange Company Appear Below: Dividends

question 4

Multiple Choice

Financial statements for Orange Company appear below: Dividends during Year 2 totaled $156 thousand, of which $18 thousand were preferred dividends.
The market price of a share of common stock on December 31, Year 2 was $100.

-Orange Company's current ratio at the end of Year 2 was closest to:

• A)1.24
• B)0.55
• C)0.44
• D)1.71

Understand how manufacturing overhead costs are allocated to individual jobs based on direct labor hours or machine hours.

Calculate total job costs and unit product costs using job-order costing data.

Understand the role of fixed and variable manufacturing overhead costs in job-order costing.

Recognize the impact of using single plantwide predetermined overhead rates versus department-specific rates.

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Definitions:

Producer Surplus

The difference between the amount producers are willing to accept for a good or service and the actual amount they receive.

Tax

A necessary economic duty or another sort of imposition exacted from a taxpayer by a governmental agency to allocate funds for government activities and multiple public financial needs.

Good

A tangible item that satisfies some human want or need, which can be transferred from the producer to a buyer.

Deadweight Loss

A loss of economic efficiency that can occur when the equilibrium for a good or a service is not achieved, leading to a mismatch between supply and demand.