In U.S. markets, there are many substitute products for Head & Shoulders dandruff shampoo, suggesting the price elasticity of demand for Head & Shoulders is high.

Baka Corporation applies manufacturing overhead on the basis of direct labor-hours. At the beginning of the most recent year, the company based its predetermined overhead rate on total estimated overhead of $240,200 and 4,780 estimated direct labor-hours. Actual manufacturing overhead for the year amounted to $242,000 and actual direct labor-hours were 4,610.The predetermined overhead rate for the year was closest to:

A) $52.49
B) $48.46
C) $50.25
D) $50.63

The percentage of net income that is added to retained earnings is called the:

A) Payout ratio.
B) Profit margin.
C) Retention ratio.
D) Internal growth rate.
E) Intensity ratio.

A new machine costing $1,800,000 cash and estimated to have a $60,000 salvage value was purchased on January 1.The machine is expected to produce 600,000 units of product during its 8-year useful life.Calculate the depreciation expense in the first year under the following independent situations:
1.The company uses the units-of-production method and the machine produces 70,000 units of product during its first year.
2.The company uses the double-declining-balance method.
3.The company uses the straight-line method.

Mocha Company manufactures a single product by a continuous process involving three production departments. The records indicate that direct materials, direct labor, and applied factory overhead for Department 2 were $100,000, $125,000, and $150,000, respectively. The records further indicate that direct materials, direct labor, and applied factory overhead for Department 3 were $50,000, $60,000, and $70,000, respectively. In addition, work in process at the beginning of the period for Department 3 totaled $75,000, and work in process at the end of the period totaled $60,000. The journal entry to record the flow of costs into Department 3 during the period for direct materials is

The amount of income tax owed by a family is

A) unaffected by deductions.
B) total income minus tax credits.
C) not simply proportional to its total income.
D) a constant fraction of income.