If the Overhead Applied Rate Based on Direct Labor Hours

question 86

Multiple Choice

If the overhead applied rate based on direct labor hours is $10.00 and the actual labor hours are 520, what is the amount credited to Manufacturing Overhead-Applied?

• A) $5,200
• B) $520
• C) $52,000
• D) None of the above

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Definitions:

MRP

Marginal Resource Product, which measures the additional revenue generated by employing one more unit of a resource.

MRC

Marginal Revenue Cost, often used interchangeably with Marginal Cost, refers to the increase in cost associated with producing one additional unit of output.

Profitable

The condition of earning more revenue than the costs incurred, leading to a financial gain or profit for the individual or organization.

Innovation

The first commercially successful introduction of a new product, use of a new method of production, or creation of a new form of business organization.