Firm a has a debt-equity ratio of .5. firm b has a debt-equity ratio of .8. all other features of these firms are identical. the return on equity of firm a is:
a. equally as volatile as the return of equity of firm b.
b. less volatile than the return on equity of firm b.
c. more volatile than the return on equity of firm b.
d. unaffected by the debt-equity ratio.

Mno corporation uses a job-order costing system with a predetermined overhead rate based on direct labor-hours. the company based its predetermined overhead rate for the current year on the following data: total estimated direct labor-hours 50,000 total estimated fixed manufacturing overhead cost $ 285,000 estimated variable manufacturing overhead per direct labor-hour $ 3.80 recently, job p123 was completed with the following characteristics: total actual direct labor-hours 20 direct materials $ 710 direct labor cost $ 500 the amount of overhead applied to job p123 is closest to: