Templeton Widgets Applies Manufacturing Overhead Based on Direct Labor Hours

question 149

Multiple Choice

Templeton Widgets applies manufacturing overhead based on direct labor hours.It budgeted 123,000 direct labor hours at $11.50 per labor hour and incurred 125,000 direct labor hours at an actual total labor cost of $1,500,000.It incurred $720,000 of manufacturing overhead and estimated the manufacturing overhead cost to be $707,250 for the period.What was the predetermined overhead rate?

• A)$0.50
• B)$5.75
• C)$0.48
• D)$5.76

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Definitions:

Uracil

A nitrogen-containing base found in RNA, where it pairs with adenine and replaces thymine during DNA transcription.

RNA

Ribonucleic acid is a type of nucleic acid found in every living cell, serving as a messenger that transports directions from DNA for the production of proteins.

Nitrogen Bases

Organic molecules that make up the building blocks of DNA and RNA, including adenine, thymine, cytosine, guanine, and uracil.

Enzymes

Natural substances that markedly enhance the rate at which virtually all intra-cellular chemical reactions occur.