Figure 4-12 the Gardenview Corporation Has Identified the Following Overhead Costs and Costs

question 93

Multiple Choice

Figure 4-12
The Gardenview Corporation has identified the following overhead costs and activity drivers for next year:
The following are two of the jobs completed during the year:
The company's normal activity is 2,000 direct labor hours.
-Refer to Figure 4-12. If kilowatt hours are used to assign power costs, the amount of power costs assigned to Job 6A would be

• A) $33.20.
• B) $30.00.
• C) $102.00.
• D) $53.32.

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Definitions:

Direct Approach

A method of income statement preparation where expenses are listed directly against revenue items to show the net income.

Indirect Approach

A method often used in preparing cash flow statements where net income is adjusted for non-cash transactions and changes in working capital.

Investing Activities

Transactions involving the purchase and sale of long-term assets and investment securities, as part of a company’s cash flow activities.

Financing Activities

Transactions involving raising capital and repaying investors, including issuing equity or debt, and dividend payments.