Marvel Company Uses a Predetermined Overhead Rate in Applying Overhead

question 147

Multiple Choice

Marvel Company uses a predetermined overhead rate in applying overhead to production orders on a labor-cost basis in Department A and on a machine-hours basis in Department B. At the beginning of the most recently completed year, the company made the following estimates:
$$\begin{array} { l r r } & \text { Dept. A } & \text { Dept. B } \\\text { Direct labor cost } & \$ 56,000 & \$ 33,000 \\\text { Factory overhead } & \$ 67,200 & \$ 45,000 \\\text { Direct labor-hours } & 8,000 & 9,000 \\\text { Machire-hours } & 4,000 & 15,000\end{array}$$
What predetermined overhead rate would be used in Department A and Department B, respectively?

• A) 83% and $5.
• B) 83% and $3.
• C) 120% and $3.
• D) 120% and $5.

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Definitions:

Positive Emotions

Feelings that are generally considered beneficial for well-being and happiness, such as joy, gratitude, and contentment.

Tolerate Pain

The ability or capacity to endure discomfort or suffering.

Organizational Commitment

The psychological attachment or loyalty of an employee towards their employer or organization.

Job Satisfaction

refers to the level of contentment employees feel regarding their jobs, encompassing aspects like work environment, compensation, and task complexity.