Johansen Corporation Uses a Predetermined Overhead Rate Based on Direct

question 406

Multiple Choice

Johansen Corporation uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. The Corporation has provided the following estimated costs for the next year: Jameson estimates that 20,000 direct labor-hours will be worked during the year. The predetermined overhead rate per hour will be:

• A) $2.50 per direct labor-hour
• B) $2.79 per direct labor-hour
• C) $3.00 per direct labor-hour
• D) $4.00 per direct labor-hour

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The total amount by which the expenses and costs of businesses in a certain industry exceed their total revenues.

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The financial outcome derived from removing all explicit and implicit costs from the aggregate revenue.

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