Steve writes a novel and sends it to Penny Publishing. Penny offers Steve $5,000 for a six-month option on the work, and Steve accepts the money. Nine months later, Penny has still not agreed to publish, and Biggie Publishing offers Steve $50,000 for the novel. Steve wants to accept.
Can he legally do so?

a. Yes, because the offer of $50,000 is greater than Penny's offer.
b. Yes, because nine months have passed.
c. Yes, because penny paid him for the option to publish his book.
d. No, because a person may not accept two offers for the same item.

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.