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:

Remedy of Rescission

A legal remedy that voids a contract, returning the parties to their positions prior to the agreement, typically used in cases of misrepresentation or fraud.

Statutory Assignment

The transfer of legal rights from one party to another under the terms of a statute.

Equitable Assignment

Equitable assignment refers to a transfer of rights or benefits from one party to another that is recognized by courts of equity despite lacking the formal legal structure of a statutory assignment.

Fraudulent Misrepresentation

A false statement made knowingly, without belief in its truth, or recklessly, with intent to deceive and induce another to enter into a contract.