Kelsh Company Uses a Predetermined Overhead Rate Based on Machine

question 33

Multiple Choice

Kelsh Company uses a predetermined overhead rate based on machine hours to appl? manufacturing overhead to jobs. The company has provided the following estimated costs for next year: $$\begin{array} { l c } \text { Direct materials } & \$ 10,000 \\\text { Direct labour } & 30,000 \\\text { Sales commissions } & 40,000 \\\text { Salary of production supervis or } & 20,000 \\\text { In direct materials } & 4,000 \\\text { Advertising expense } & 8,000 \\\text { Rent on factory equipment } & 10,000\end{array}$$ Kelsh estimates that 5,000 direct labour hours and 10,000 machine hours will be worked during the year. The predetermined overhead rate per hour will be:

• A)$6.40.
• B)$8.20.
• C)$6.80.
• D)$3.40.

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Definitions:

Extraversion

A personality trait characterized by high levels of enthusiasm, sociability, and assertiveness.

Self-Esteem

A person’s attitude toward him- or herself.

Lowest Self-Esteem

Refers to the lowest level of an individual's appraisal of their own worth or value.

Reference-Group Effect

When people compare themselves to other people they know when completing personality questionnaires.