Dawn Manufacturing’s records show a journal entry was made debiting Work in Process Inventory and crediting Manufacturing Overhead for $3,390. Dawn’s predetermined overhead rate is 150% of direct labor cost. Which of the following can be surmised from this journal entry? 1. $3,390 was paid out for overhead costs incurred
2. Actual direct labor of $2,260 was incurred

Match the given situations to the type of risks that a business may face while taking credit. 1. beta ltd. had taken a loan from a bank for a period of 15 years, but its sales are gradually showing a decline. 2. alpha ltd. has taken a loan for increasing its production and sales, but it has not conducted any research before making this decision. 3. delphi ltd. has an overseas client. the economy of the client’s country is going through severe recession. 4. delphi ltd. has taken a short-term loan from the bank, but its supply chain logistics are not in place. a. foreign exchange risk b. operational risk c. term of loan risk d. revenue projections risk