Gilchrist corporation bases its predetermined overhead rate on the estimated machine-hours for the upcoming year. at the beginning of the most recently completed year, the corporation estimated the machine-hours for the upcoming year at 79,000 machine-hours. the estimated variable manufacturing overhead was $7.38 per machine-hour and the estimated total fixed manufacturing overhead was $2,347,090. the predetermined overhead rate for the recently completed year was closest to: a) $37.09 per machine-hour b) $36.07 per machine-hour c) $7.38 per machine-hour d) $29.71 per machine-hour

Which of the following statements is correct? stockholders should generally be happier than bondholders to have managers invest in risky projects with high potential returns as opposed to safe projects with lower expected returns. potential conflicts between stockholders and bondholders are increased if a firm's bonds are convertible into its common stock. takeovers are most likely to be attempted if the target firm’s stock price is above its intrinsic value. one advantage of operating a business as a corporation is that stockholders can deduct their pro rata share of the taxes the firm pays, thereby eliminating the double taxation investors would face in a partnership.