Question
1. For the FY 2018, Frederick Company had net sales of $1,200,000 and net income of $85,000, paid income taxes of $27,500, and had before
1. For the FY 2018, Frederick Company had net sales of $1,200,000 and net income of $85,000, paid income taxes of $27,500, and had before tax interest expense of $12,500. Use this information to determine the Times Interest Earned Ratio. Round your answers to one decimal place.
2. On June 1, 2019 Adelphi Corporation issued $300,000 of 6%, 10-year bonds. The bonds which were issued at 97, pay interest on January 1 and June 1. Use this information to calculate the amount of bond discount or premium that is amortized with each interest payment. Enter as a whole number (no cents).
3. The Botosan Factory has determined that its budgeted factory overhead for the year is $13,500,000, and the budgeted direct labor hours are 10,000,000. If the actual direct labor hours for the period are 350,000, how much overhead would be allocated to the period?
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