Aiello Company began the year with $56,000 in retained earnings, and 21,000 shares of $0.25 par value common stock originally issued at $5 per share. During the year, the board of directors declared $6,000 of cash dividends on June 30. On July 1, Aiello Company declared a 1-for-2 reverse stock split. The market price of the Aiello Company stock was $18.00 just before the split.
Which of the following is one effect on the day the stock split occurs?
A. Retained earnings increases by $5,250.
B. Common stock increases by $5,250.
C. Total shareholders' equity decreases by $10,500.
D. The market price of the stock increases to $36.00 per share.
Answers: 3
Business, 22.06.2019 11:40
Zachary company produces commercial gardening equipment. since production is highly automated, the company allocates its overhead costs to product lines using activity-based costing. the costs and cost drivers associated with the four overhead activity cost pools follow: activities unit level batch level product level facility level cost $ 64,800 $ 27,730 $ 15,000 $ 154,000 cost driver 2,400 labor hrs. 47 setups percentage of use 11,000 units production of 780 sets of cutting shears, one of the companyβs 20 products, took 240 labor hours and 7 setups and consumed 15 percent of the product-sustaining activities. required: (a) had the company used labor hours as a company wide allocation base, how much overhead would it have allocated to the cutting shears? (b) how much overhead is allocated to the cutting shears using activity-based costing? (c) compute the overhead cost per unit for cutting shears first using activity-based costing and then using direct labor hours for allocation if 780 units are produced. if direct product costs are $150 and the product is priced at 30 percent above cost for what price would the product sell under each allocation system? (d) assuming that activity-based costing provides a more accurate estimate of cost, indicate whether the cutting shears would be over- or underpriced if direct labor hours are used as an allocation base. explain how over-or undercosting can affect vaulker's profitability. (e) comment on the validity of using the allocated facility-level cost in the pricing decision. should other costs be considered in a cost- plus pricing decision? if so, which ones? what costs would you include if you were trying to decide whether to accept a special order?
Answers: 1
Business, 22.06.2019 20:40
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Answers: 2
Business, 23.06.2019 01:00
"consists of larger societal forces that affect how a company engages and serves its customers."
Answers: 1
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