Clinton Manufacturing Uses a Predetermined Overhead Allocation Rate Based on Direct

question 56

Multiple Choice

Clinton Manufacturing uses a predetermined overhead allocation rate based on direct labor costs.The following are the details of production during the year: $\begin{array} { | l | l | } \hline \text { Total manufacturing overhead costs estimated at the beginning } & \\\text { of the year } & \$ 150,000 \\\hline \text { Total direct labor costs estimated at the beginning of the year } & \$ 350,000 \\\hline \text { Total direct labor hours estimated at the beginning of the year } & 11,000 \text { direct labor hours } \\\hline \text { Actual manufacturing overhead costs for the year } & \$ 160,000 \\\hline \text { Actual direct labor costs for the year } & \$ 360,000 \\\hline \text { Actual direct labor hours for the year } & 12,400 \text { direct labor hours } \\\hline\end{array}$ Calculate the amount of manufacturing overhead costs allocated to production.(Round any percentages to two decimal places and your final answer to the nearest dollar.)

• A) $150,000
• B) $164,571
• C) $154,296
• D) $160,000

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Definitions:

Independent Variable

The variable that is manipulated by the researcher to observe its effect on the dependent variable.

Loudness

A subjective perception of the intensity of sound, often measured in decibels, that impacts how sound is experienced.

Noise

Unwanted sound that is loud, unpleasant, or causes disturbance.

Correlational Study

A type of research design where the relationship between two variables is examined, without determining cause and effect.