The Predetermined Manufacturing Overhead Rate for 2020 Was $4

question 109

Multiple Choice

The predetermined manufacturing overhead rate for 2020 was $4.00 per direct labor hour; employees were paid $5.00 per hour. If the estimated direct labor cost was $75,000, what was the estimated manufacturing overhead?

• A) $15,000.
• B) $60,000.
• C) $75,000.
• D) $93,750.

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Definitions:

Cumulative Voting

A voting system in corporate governance that allows shareholders to concentrate their votes on a single candidate, enhancing minority shareholders' representation.

Minority Shareholder

An investor or shareholder who owns less than 50% of a company's shares, holding lesser voting power and control over corporate decisions compared to majority shareholders.

Extraordinary Measures

Extraordinary measures refer to unconventional or exceptional actions taken, often by governments or organizations, in response to critical and unusual situations.

Corporate Transactions

Deals or agreements that involve companies, including mergers, acquisitions, divestitures, and other activities that alter the corporate structure or ownership.