Port city was sued for injuries sustained when a citizen slipped and broke her hip on the icy city hall steps. the city attorney estimates the city will be held liable by the courts and a judgment of $300,000 will result. because of the nature of the case it will likely be four years before the city makes any payment related to the accident. the present value of the likely future payment is $251,000. in the general fund, at the end of the current fiscal year, port city should recognize a liability of $300,000. $251.000. $75,000

Nichols inc. manufactures remote controls. currently the company uses a plantminuswide rate for allocating manufacturing overhead. the plant manager is considering switchingminusover to abc costing system and has asked the accounting department to identify the primary production activities and their cost drivers which are as follows: activities cost driver allocation rate material handling number of parts $5 per part assembly labor hours $20 per hour inspection time at inspection station $10 per minute the current traditional cost method allocates overhead based on direct manufacturing labor hours using a rate of $20 per labor hour. what are the indirect manufacturing costs per remote control assuming an method is used and a batch of 10 remote controls are produced? the batch requires 100 parts, 5 direct manufacturing labor hours, and 3 minutes of inspection time.