Mr. Smith has been bearish about ABC common stock and decides to sell short 1,000 shares @40 in his margin account. The stock later declines to $35. What is Mr. Smith's equity in his margin account after the decline in the market value of the stock?

Bridge building company estimates that it will incur $1,200,000 in overhead costs for the year. additionally, the company estimates 50,000 direct labor hours will be spent building custom walking bridges for the year at a total direct labor cost of $600,000. what is the predetermined overhead rate for bridge building company if direct labor costs are to be used as an allocation base?