Duran Corporation Uses Direct Labor-Hours in Its Predetermined Overhead Rate

question 99

Multiple Choice

Duran Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the total estimated manufacturing overhead was $224,580. At the end of the year, actual direct labor-hours for the year were 18,200 hours, manufacturing overhead for the year was underapplied by $12,100, and the actual manufacturing overhead was $219,580. The predetermined overhead rate for the year must have been closest to:

• A) $11.40.
• B) $12.34.
• C) $12.06.
• D) $10.53.

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Definitions:

Statistical Analyses

The methods and techniques used to collect, analyze, interpret, and present data in a meaningful context.

Data Obtained

The information collected or received from various sources through research, observation, or recording.

Scientific Method

A systematic process for gathering knowledge and testing hypotheses including observation, experimentation, and analysis to generate empirical evidence.

Replication

The process by which the genetic material, usually DNA, is duplicated to ensure that each new cell receives a complete set of chromosomes during cell division.