Felton Quality Productions Uses a Predetermined Overhead Allocation Rate Based

question 123

Multiple Choice

Felton Quality Productions uses a predetermined overhead allocation rate based on machine hours.It has provided the following information for the year: $$\begin{array} { | l | l | } \hline \text { Actual manufacturing overhead costs incurred } & \$ 100,000 \\\hline \text { Manufacturing overhead costs allocated to production } & \$ 56,000 \\\hline \text { Actual direct materials cost } & \$ 220,000 \\\hline \text { Actual direct labor cost } & \$ 40,000 \\\hline \text { Actual machine hours } & 32,000 \text { hours } \\\hline\end{array}$$ Based on the above information,calculate the predetermined overhead allocation rate applied by Felton Quality.(Round your answer to the nearest cent.)

• A) $1.75 per machine hour
• B) $3.13 per machine hour
• C) $6.88 per machine hour
• D) $1.25 per machine hour

---

Definitions:

Before and After

A comparison or analysis technique that examines the conditions or states before and after a specific event or intervention.

Prototype

An early model or sample of a product built to test a concept or process, serving as a thing to be replicated or learned from.

Pilot Test

An initial small-scale implementation used to evaluate the feasibility, duration, cost, and adverse events involved in a research project.

Scientific Experimentation

The systematic investigation of scientific theories and hypotheses through controlled testing and observation.