10–7. implied contracts. ralph ramsey insured his car with allstate insurance co. he also owned a house on which he maintained a homeowner's insurance policy with allstate. bank of america had a mortgage on the house and paid the insurance premiums on the homeowner's policy from ralph's account. after ralph died, allstate canceled the car insurance. ralph's son douglas inherited the house. the bank continued to pay the premiums on the homeowner's policy, but from douglas's account, and allstate continued to renew the insurance. when a fire destroyed the house, allstate denied coverage, however, claiming that the policy was still in ralph's name. douglas filed a suit in a federal district court against the insurer. was allstate liable under the homeowner's policy? explain. [ramsey v. allstate insurance co., 2013 wl 467327 (6th cir. 2013)]

Harwood company uses a job-order costing system that applies overhead cost to jobs on the basis of machine-hours. the company's predetermined overhead rate of $2.50 per machine-hour was based on a cost formula that estimates $240,000 of total manufacturing overhead for an estimated activity level of 96,000 machine-hours. required: 1. assume that during the year the company works only 91,000 machine-hours and incurs the following costs in the manufacturing overhead and work in process accounts: compute the amount of overhead cost that would be applied to work in process for the year and make the entry in your t-accounts. 2a. compute the amount of underapplied or overapplied overhead for the year and show the balance in your manufacturing overhead t-account. 2b. prepare a journal entry to close the company's underapplied or overapplied overhead to cost of goods sold.

Newton industries is considering a project and has developed the following estimates: unit sales = 4,800, price per unit = $67, variable cost per unit = $42, annual fixed costs = $11,900. the depreciation is $14,700 a year and the tax rate is 34 percent. what effect would an increase of $1 in the selling price have on the operating cash flow?

Colter steel has $5,550,000 in assets. temporary current assets $ 3,100,000 permanent current assets 1,605,000 fixed assets 845,000 total assets $ 5,550,000 assume the term structure of interest rates becomes inverted, with short-term rates going to 10 percent and long-term rates 2 percentage points lower than short-term rates. earnings before interest and taxes are $1,170,000. the tax rate is 40 percent earnings after taxes = ?