The Predetermined Overhead Rate for Manufacturing Overhead for 2020 Is

question 127

Multiple Choice

The predetermined overhead rate for manufacturing overhead for 2020 is $4.00 per direct labor hour. Employees are expected to earn $5.00 per hour and the company is planning on paying its employees $100,000 during the year. However, only 75% of the employees are classified as "direct labor." What was the estimated manufacturing overhead for 2020?

• A) $60,000.
• B) $75,000.
• C) $80,000.
• D) $93,750.

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Definitions:

Percentage

A proportion or share expressed as a fraction of 100, denoting part of a whole.

Normal Model

A bell-shaped probability distribution characterized by its mean and standard deviation, often used to describe naturally occurring phenomena.

Middle 95%

Refers to the central portion of a distribution that contains 95% of the data, often used in the context of confidence intervals indicating where the true population parameter lies with a certain level of confidence.

Normal Model

A distribution of probability that exhibits symmetry around the mean, demonstrating that data points close to the mean occur more frequently than those far from it.