Week 4 midterm accounting assessment

QUESTION 6

1. Alton Company has an overhead application rate of 160% and allocates overhead based on direct materials. During the current period, direct labor is $50,000 and direct materials used are $80,000. Determine the amount of overhead Alton Company should record in the current period.

QUESTION 7

1. A corporation is authorized to issue 9,000 shares of $5 common stock. What should the corporation report as paid-in capital from the issuance of common stock?

QUESTION 8

1. What is customer orientation?

QUESTION 9

1. Shamrock Company had net income of $30,000. On January 1, the number of shares of common stock outstanding was 8,000. The company declared a $2,700 dividend on its noncumulative, nonparticipating preferred stock. There were no other stock transactions. What is the company’s earnings per share?

QUESTION 10

1. Canoe Company uses a job order cost accounting system and allocates its overhead on the basis of direct labor costs. Canoe Company’s production costs for the year were: direct labor, $30,000; direct materials, $50,000; and factory overhead applied, $6,000. What was the overhead application rate?