Minton Company Provided the Following Information from Its Accounting Records

question 89

Multiple Choice

Minton Company provided the following information from its accounting records for 2013: $$\begin{array} { l r } \text { Expected production } & 60,000 \text { labor hours } \\\text { Actual production } & 56,000 \text { labor hours } \\\text { Budgeted overhead } & \$ 1,500,000 \\\text { Actual overhead } & \$ 1,450,000\end{array}$$ How much is the overhead application rate if Minton Company bases it on direct labor hours?

• A)$25.00 per hour
• B)$26.79 per hour
• C)$25.89 per hour
• D)$24.17 per hour

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Definitions:

Prices

The monetary value expected, demanded, or delivered in exchange for a good or service.

Real Exchange Rate

The rate at which two currencies can be exchanged, adjusted for inflation, reflecting the actual purchasing power of one currency over another.

Arbitraging

The practice of buying and selling the same asset in different markets to take advantage of differing prices for the same asset.

Foreign Goods

Products or services that are produced outside one's own country and imported for domestic consumption.