If Annual Overhead Costs Are Expected to Be $750000 and Direct

question 94

Multiple Choice

If annual overhead costs are expected to be $750000 and direct labor costs are expected to be $1000000 then if the activity base is direct labor costs:

• A) $1.33 is the predetermined overhead rate.
• B) for every dollar of manufacturing overhead 75 cents of direct labor will be assigned.
• C) for every dollar of direct labor 75 cents of manufacturing overhead will be assigned.
• D) a predetermined overhead rate cannot be determined.

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Definitions:

Wagon Trains

Convoys or groups of wagons traveling together, typically used for migration and transportation of goods across long distances in the 19th century American West.

Emigrants

Individuals who leave their country of origin to live permanently in another country, often in search of better living conditions or to escape conflicts.

Oregon

A state in the Pacific Northwest region of the United States known for its diverse landscapes, including forests, mountains, farms, and beaches.

Texas Revolt

The 1830s rebellion of residents of the territory of Texas—many of them American emigrants—against Mexican control of the region.