The Following Information Was Taken from the Annual Manufacturing Overhead

question 70

Multiple Choice

The following information was taken from the annual manufacturing overhead cost budget of Fergie Manufacturing. $\begin{array}{lr}\text { Variable manufacturing overhead costs } & \$ 92,400 \\\text { Fixed manufacturing overhead costs } & \$ 55,440 \\\text { Normal production level in labor hours } & 30,800 \\\text { Normal production level in units } & 5,775 \\\text { Standard labor hours per unit } & 4\end{array}$ During the year, 5,600 units were produced, 18,340 hours were worked, and the actual manufacturing overhead was $151,200.Actual fixed manufacturing overhead costs equaled budgeted fixed manufacturing overhead costs.Overhead is applied on the basis of direct labor hours.Fergie's total overhead rate is

• A)$2.40.
• B)$4.00.
• C)$6.40.
• D)$6.53.

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Definitions:

Role Overloads

The stress or pressure experienced by individuals when the demands of their roles exceed their ability to cope, often leading to burnout or decreased performance.

Personal Wellness

The holistic approach to maintaining a healthy balance of the mind, body, and spirit that contributes to overall well-being and quality of life.

Fringe Benefit

Additional compensation provided to employees beyond their base salary, such as health insurance, retirement benefits, and paid vacations.

Health-Promotion Program

Initiatives designed to improve individual or community health through preventive measures and lifestyle changes.