Hickingbottom Corporation Has Two Production Departments, Forming and Finishing

question 165

Multiple Choice

Hickingbottom Corporation has two production departments, Forming and Finishing. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Forming Department's predetermined overhead rate is based on machine-hours and the Finishing Department's predetermined overhead rate is based on direct labor-hours. At the beginning of the current year, the company had made the following estimates: During the current month the company started and finished Job M381. The following data were recorded for this job:
The predetermined overhead rate for the Finishing Department is closest to:

• A) $9.40 per direct labor-hour
• B) $13.00 per direct labor-hour
• C) $3.60 per direct labor-hour
• D) $5.35 per direct labor-hour

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Definitions:

Truth or Falsity

Concepts used to evaluate statements, beliefs, or propositions that are capable of being true or false.

Semantic Isomorphism

A concept in semantic theory suggesting a one-to-one correspondence between the structure of a sentence and its meaning.

Ambiguity

The presence of two or more possible meanings within a single word or phrase, leading to uncertainty or interpretation.

Family Resemblance

A concept referring to the way in which members of a family share common characteristics, making them recognizable as part of the same group, but without necessarily having a single common feature.