If Annual Overhead Costs Are Expected to Be $750000 and Direct

question 94

Multiple Choice

If annual overhead costs are expected to be $750000 and direct labor costs are expected to be $1000000 then if the activity base is direct labor costs:

• A) $1.33 is the predetermined overhead rate.
• B) for every dollar of manufacturing overhead 75 cents of direct labor will be assigned.
• C) for every dollar of direct labor 75 cents of manufacturing overhead will be assigned.
• D) a predetermined overhead rate cannot be determined.

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Definitions:

Pericycle

A layer of cells just inside the endodermis in plant roots, which can give rise to lateral roots, contributing to the plant's growth and development.

Illuviation

The deposition of material leached from the upper layers of soil into the lower layers.

Dissolved Materials

Substances that are mixed uniformly at the molecular level in a solvent, forming a solution.

Root Cortex

The layer of plant tissue between the epidermis and the vascular cylinder in roots, important for storage and transport of nutrients.