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

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Definitions:

ADH

Antidiuretic Hormone, a hormone that helps to control the balance of water in the body by affecting the kidneys.

Water Reabsorption

The process by which water is taken back into the body from the filtrate produced by the kidneys during urine formation, thus maintaining fluid balance.

Collecting Ducts

The structures in the kidneys that receive urine from the nephrons and transport it into the renal pelvis, playing a key role in water and ion balance.

Filtrate Osmolality

Filtrate osmolality refers to the concentration of solutes in the fluid that is filtered through the body's cells or organs, important in the regulation of water and solute balance.