If Projected Factory Overhead Is $540 000 P

question 29

Multiple Choice

If projected factory overhead is $540 000 p.a. and projected direct labour hours are 60 000 hours p.a., the overhead application rate is:

• A) $90 000.
• B) $540 000.
• C) $9 per direct labour hour.
• D) $0.90 per direct labour hour.

Understand the concept and purpose of negotiated Alternative Dispute Resolution (ADR) systems.

Comprehend Gibson, Thompson and Bazerman's symmetric prescriptive advice for mediators.

Distinguish between mediation and arbitration.

Appreciate the role of a mediator when resistance points of opposing sides do not overlap.

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Definitions:

Cumulative Preferred Stock

A type of preferred stock where dividends accrue and must be paid out before dividends can be distributed to common stockholders.

Par Common Stock

The nominal or face value assigned to a share of common stock, which has relevance in corporate accounting.

Par Value

A nominal value assigned to a stock or bond, representing its face value rather than its market value.

Stock Split

This action increases the number of shares of a corporation by issuing more shares to current shareholders, which typically results in a decrease in the per-share price, making the stock more accessible to a wider range of investors.