If Annual Overhead Costs Are Expected to Be $800,000 and Direct

question 168

Multiple Choice

If annual overhead costs are expected to be $800,000 and direct labor costs are expected to be $1,000,000, then if the activity base is direct labor costs:

• A) $1.25 is the predetermined overhead rate.
• B) for every dollar of manufacturing overhead, 80 cents of direct labor will be assigned.
• C) for every dollar of direct labor, 80 cents of manufacturing overhead will be assigned.
• D) a predetermined overhead rate cannot be determined.

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Definitions:

Hair Cells

Sensory cells located in the inner ear that are critical for hearing and balance, converting mechanical sound waves into neural signals.

Slowly Adapting Receptors

Sensory receptors in the body that respond to a stimulus over an extended period, gradually decreasing in activity.

Meissner's Corpuscles

Specialized nerve endings in the skin that are sensitive to light touch, enabling the perception of texture, shape, and fine details.

Merkel's Receptors

Specialized nerve endings in the skin that respond to light touch and pressure, helping in the perception of texture and shape.