WORKING PAPERS F/ FUND ACCOUNTING
WORKING PAPERS F/ FUND ACCOUNTING
22nd Edition
ISBN: 9781308868394
Author: Wild
Publisher: MCG CUSTOM
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Chapter 16, Problem 5BPSB
Requirement 2

To determine



The comment on wisdom of cash dividend payment.

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The following cost data relate to the office overhead costs of Hamilton Accounting Services during the just-completed year: • Office rent: $32,400 Office supplies: $6,980 • Utilities, office: $18,250 • Salary, office manager: $62,180 • Salary, receptionist: $40,560 • Depreciation-office equipment: $13,750 • Software licensing fees: $27,320 • Other miscellaneous expenses: $35,600 Total overhead costs: $237,040 The company applies overhead costs using a predetermined overhead rate of $7 per accountant hour. A total of 36,200 accountant hours was recorded for the year. Compute the amount of under- or overapplied overhead cost for the year.
general accounting

Chapter 16 Solutions

WORKING PAPERS F/ FUND ACCOUNTING

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