Krier Corporation Uses a Predetermined Overhead Rate That Was Based

question 5

Multiple Choice

Krier Corporation uses a predetermined overhead rate that was based on estimated total fixed manufacturing overhead of $738,000 and 30,000 direct labor-hours for the period. The company incurred actual total fixed manufacturing overhead of $792,000 and 31,500 total direct labor-hours during the period.The predetermined overhead rate is closest to:

• A) $26.40
• B) $25.14
• C) $23.43
• D) $24.60

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Definitions:

CISG

The United Nations Convention on Contracts for the International Sale of Goods, a treaty that provides a uniform international sales law.

Consideration

Something of value exchanged between parties in a contract that is necessary for the agreement to be legally binding, such as money, services, or promises.

UCC

Short for Uniform Commercial Code, it is a set of laws that provide legal framework for commercial transactions in the United States.

Consideration

A key element in contract law that involves something of value exchanged between parties as part of an agreement.