Whenever you use the effective-interest method of bond issued at a discount or premium, the periodic interest expense is equal to Group of answer choices the stated rate multiplied by the beginning-of-period carrying amount of the bonds. the market rate multiplied by the beginning-of-period carrying amount of the bonds. the stated (nominal) rate of interest multiplied by the face value of the bonds. the market rate of interest multiplied by the face value of the bonds.

Speedy auto repairs uses a job-order costing system. the company’s direct materials consist of replacement parts installed in customer vehicles, and its direct labor consists of the mechanics’ hourly wages. speedy’s overhead costs include various items, such as the shop manager’s salary, depreciation of equipment, utilities, insurance, and magazine subscriptions and refreshments for the waiting room. the company applies all of its overhead costs to jobs based on direct labor-hours. at the beginning of the year, it made the following estimates: direct labor-hours required to support estimated output 20,000 fixed overhead cost $ 350,000 variable overhead cost per direct labor-hour $ 1.00 required: 1. compute the predetermined overhead rate. 2. during the year, mr. wilkes brought in his vehicle to replace his brakes, spark plugs, and tires. the following information was available with respect to his job: direct materials $ 590 direct labor cost $ 109 direct labor-hours used 6