The Following Information Was Gathered for Indians Company Assume the Cost Driver Is Direct-Labor Hours

question 16

Multiple Choice

The following information was gathered for Indians Company: $$\begin{array} { l r } \text { Budgeted direct-labor hours } & 8,000 \\\text { Actual direct-labor hours } & 8,400 \\\text { Budgeted factory overhead } & \$ 220,875 \\\text { Actual factory overhead } & \$ 224,970\end{array}$$ Assume the cost driver is direct-labor hours.The budgeted factory-overhead rate is _____.

• A)$27.61
• B)$27.77
• C)$27.27
• D)$29.03

---

Definitions:

Federal Government

The national government of a country, responsible for governing the nation as a whole.

Contract Clause

is a component of the U.S. Constitution that prevents states from enacting laws that retroactively impair contract rights.

Constitution

Core tenets or long-standing norms that guide the governance of a state or similar entity.

State Governments

The governing bodies of individual states within a federation, responsible for legislating and implementing state-specific laws and regulations.