Exhibit 1-9 -Using the Values in Exhibit 1-9, Calculate the Slope of Calculate

question 7

Multiple Choice

Exhibit 1-9

-Using the values in Exhibit 1-9, calculate the slope of a line graphed with x on the horizontal axis and y on the vertical axis.

• A) 0.5
• B) 2
• C) 1.5
• D) 100
• E) the slope cannot be determined without additional information

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Definitions:

Predetermined Overhead Rate

This is a rate used to allocate manufacturing overhead costs to products or job orders, estimated by dividing total estimated overhead costs by an allocation base, such as direct labor hours or machine hours.

Variable Manufacturing Overhead

Costs that vary with the level of production output but are indirect in nature, such as indirect materials and utilities.

Fixed Manufacturing Overhead

Regular, fixed costs associated with operating a manufacturing facility, including costs like rent, depreciation, and property taxes.

Machine-Hours

A measure of production activity that represents the total hours machines are operating over a given period.