Housholder Corporation Uses a Predetermined Overhead Rate Base on Machine-Hours

question 62

Multiple Choice

Housholder Corporation uses a predetermined overhead rate base on machine-hours that it recalculates at the beginning of each year. The company has provided the following data for the most recent year. The amount of manufacturing overhead that would have been applied to all jobs during the period is closest to: (Round your intermediate calculations to 2 decimal places.)

• A) $28,000
• B) $309,270
• C) $310,000
• D) $283,650

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Definitions:

Appliances

Electrical or mechanical machines that perform domestic functions, such as refrigerators or washing machines.

Net Proceeds

The final amount of money received from a transaction after deducting all associated costs and expenses.

Commission

A fee paid to an agent or employee for transacting a piece of business or performing a service, typically a percentage of the sales or services sold.

Consignment

The process of providing goods to a third-party retailer who pays the supplier only for the merchandise sold, not for unsold inventory.