Manufacturing Overhead Is Allocated to Products Based on the Number

question 31

Multiple Choice

Manufacturing overhead is allocated to products based on the number of machine hours required.In a year when 40,000 machine hours and 60,000 direct labor hours were anticipated, indirect costs were budgeted at $252,000.If production of wagons requires 9,000 machine hours and 10,800 direct labor hours, how much manufacturing overhead will be allocated to wagons?

• A)$45,360
• B)$56,700
• C)$2,268
• D)$28

---

Definitions:

Actual Capital Markets

Refers to live, operational markets where securities, debts, and equities are traded and capital is allocated in real time.

Market Efficiency

A theory stating that all available information is already reflected in asset prices, thus making it impossible to consistently achieve higher returns.

Capital Markets

Markets where individuals and institutions trade financial securities, such as stocks and bonds, facilitating the raising of capital for long-term investments.

Predict Future Price Movements

The process of using analytical or statistical methods to estimate the direction of prices of assets in the future.