Lamar Corporation Uses Departmental Manufacturing Overhead Rates to Apply Overhead

question 114

Multiple Choice

Lamar Corporation uses departmental manufacturing overhead rates to apply overhead. Direct labor cost is used to apply manufacturing overhead in Department A and machine hours are used for Department B. $$\begin{array} { | l | l | l | } \hline & \text { Dept. A } & \text { Dept. B } \\\hline \text { Direct Labor Cost } & \$ 66,000 & \$ 33,000 \\\hline \text { Factory Overhead } & \$ 9,200 & \$ 60,000 \\\hline \text { Direct Labor Hours } & 8,000 & 9,000 \\\hline \text { Machine Hours } & 4,000 & 15,000 \\\hline\end{array}$$ What predetermined overhead rate would be used for departments A and B respectively?

• A)83%; $5
• B)83%; $3
• C)120%; $4
• D)$8.40; $5

---

Definitions:

Parenting Style

The manner in which parents raise their children, characterized by various levels of responsiveness and demand.

Two-Factor Theory

A psychological theory proposing that emotions are based on physiological arousal and cognitive interpretation of that arousal.

Negative Reinforcer

An unpleasant stimulus that, when removed after a response, increases the likelihood of that response occurring in the future.