The Following Budget Data Are Available for Sharp Company If Factory Overhead Is to Be Applied Based on Direct

question 184

Multiple Choice

The following budget data are available for Sharp Company: $$\begin{array} { l r } \text { Estimated direct labor hours } & 12,000 \\\text { Estimated direct labor doll ars } & \$ 90,000 \\\text { Estimated factory overhead costs } & \$ 179,000 \\\text { Actual direct lab or hours } & 11,500 \\\text { Actual direct labor dollars } & \$ 92,000 \\\text { Actual factory overhead costs } & \$ 180,000\end{array}$$ If factory overhead is to be applied based on direct labor dollars, the predetermined overhead rate is

• A) 199%
• B) 196%
• C) $14.92
• D) $15.65

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Definitions:

Refined Sugar

Sugar that has undergone a refining process to remove impurities and reach a level of purity suitable for consumption or industrial use.

Beet Fiber

A byproduct of sugar beet processing, often used as livestock feed or as a raw material in the production of biodegradable products.

Industrial Fiber

Man-made or natural fibers that are primarily used in manufacturing and industrial applications due to their strength and durability.

Refined Sugar

Sugar that has undergone processing and purification to remove impurities and color, resulting in white, granulated sugar.