Chapter 9, Problem 9.9EYCT

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Kelly Textiles estimated manufacturing overhead for the year to be $315,600. At the end of the year, the actual direct labor hours worked were 27,600 hours. The actual manufacturing overhead incurred was $310,800, and overhead was overapplied by $12,000. If the predetermined overhead rate is based on direct labor hours, then the estimated direct labor hours at the beginning of the year used in calculating the predetermined overhead rate must have been___. a. 27,600 direct labor-hours b. 26,800 direct labor-hours c. 27,000 direct labor-hours d. 28,000 direct labor-hours Right answer

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What characterizes value-chain accounting analysis? a) Individual steps work independently b) Business process connections reveal true cost structures c) Connections remain irrelevant d) Standard costing tells all correct answer

What determines the treatment of research grants from private foundations? a. Record as revenue when received b. Recognize based on time periods c. Defer until project completion d. Match expenses with grant conditions MCQ