Odonnel Corporation Uses a Job-Order Costing System with a Single

question 256

Multiple Choice

Odonnel Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on direct labor-hours. The company based its predetermined overhead rate for the current year on total fixed manufacturing overhead cost of $36,000, variable manufacturing overhead of $2.80 per direct labor-hour, and 10,000 direct labor-hours.The predetermined overhead rate is closest to:

• A) $2.80 per direct labor-hour
• B) $6.40 per direct labor-hour
• C) $3.60 per direct labor-hour
• D) $9.20 per direct labor-hour

---

Definitions:

Mineralogist

A scientist who specializes in the study of minerals, their composition, structure, properties, and the processes that lead to their formation.

Minerals

Naturally occurring, inorganic solids with a definite chemical composition and a crystalline structure, found in rocks and the Earth's crust.

Quartz

A hard, crystalline mineral composed of silicon and oxygen atoms, widely used in jewelry and electronics.

Halite

Also known as rock salt, a mineral form of sodium chloride (NaCl) that often occurs in evaporite deposits.