If the Overhead Applied Rate Based on Direct Labor Hours

question 112

Multiple Choice

If the overhead applied rate based on direct labor hours is $7.00 and the actual labor hours are 500,what is the amount credited to Manufacturing Overhead-Applied?

• A)$3,500
• B)$350
• C)$35,000
• D)None of the above

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Definitions:

Depression

A deep and prolonged business downturn; the last one occurred in the 1930s.

Velocity of Circulation

The rate at which money moves through the economy, from transactions of individuals and businesses.

Unemployment Rate

A measure of the percentage of the labor force that is jobless and actively looking for employment.

Expansionary Monetary Policy

A policy by central banks to increase the money supply and decrease interest rates to stimulate economic growth.