Fortify, Inc Fortify Used 25,000 Direct Labor Hours and 50,000 Machine Hours

question 24

Multiple Choice

Fortify, Inc. uses a predetermined manufacturing overhead rate based on direct labor hours to apply its indirect product costs to jobs. The following information has been collected for the previous year:
$$\begin{array} { l r } \text { Direct materials } & \$ 150,000 \\\text { Direct labor } & 200,000 \\\text { Sales commissions } & 100,000 \\\text { Indirect labor } & 50,000 \\\text { Rent on office equipment } & 25,000 \\\text { Depreciation - factory building } & 75,000 \\\text { Utilities - factory } & 125,000\end{array}$$
Fortify used 25,000 direct labor hours and 50,000 machine hours during the previous year. What is the predetermined overhead rate per direct labor hour?

• A) $24.00.
• B) $15.00.
• C) $14.00.
• D) $10.00.

Understand the investment activities and strategies unique to hedge funds, including their use of leverage and lock-up periods.

Calculate arbitrage profits and understand the principles of futures pricing and arbitrage opportunities in financial markets.

Analyze investment strategies focused on exploiting market inefficiencies, such as statistical arbitrage and pairs trading.

Grasp the variety of investment options available to hedge funds, including those not available to mutual funds.

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Definitions:

Incoterm

A set of predefined commercial terms published by the International Chamber of Commerce relating to international commercial law.

Supplier Responsibilities

Supplier responsibilities involve obligations that vendors must fulfill, including delivering quality goods on time, adhering to contracts, and maintaining ethical practices.

International Purchasing Offices

Offices located in foreign markets that are responsible for identifying, negotiating, and acquiring goods and services for their parent company.

Global Commodity Management

The strategic process of managing the acquisition of raw materials and goods on a global scale to reduce costs and ensure quality.