Minton Company Provided the Following Information from Its Accounting Records

question 74

Multiple Choice

Minton Company provided the following information from its accounting records for 2017: $\begin{array}{lr}\text { Expected production } & 60,000 \text { labor hours } \\\text { Actual production } & 56,000 \text { labor hours } \\\text { Budgeted overhead } & \$ 1,800,000 \\\text { Actual overhead } & \$ 1,740,000\end{array}$ How much is the overhead application rate if Minton Company bases it on direct labor hours?

• A)$30.00 per hour
• B)$29.00 per hour
• C)$32.14 per hour
• D)$31.07 per hour

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Definitions:

Confidence Interval

A spectrum of numbers, resulted from analyzing sample data, predicted to include the true value of a parameter from an undetermined broader population.

Mean Gas Consumption

The average quantity of gas consumed over a specified period or across a group of units.

Sample Standard Deviation

A measure of the amount of variation or dispersion of a set of sample values from their sample mean.

Chi-squared Test Statistic

A measure used in statistics to determine the significance of the differences between categorical variables.