Purves Corporation Is Using a Predetermined Overhead Rate That Was

question 126

Multiple Choice

Purves Corporation is using a predetermined overhead rate that was based on estimated total fixed manufacturing overhead of $121,000 and 10,000 direct labor-hours for the period. The company incurred actual total fixed manufacturing overhead of $113,000 and 10,900 total direct labor-hours during the period. The predetermined overhead rate is closest to:

• A) $10.37
• B) $12.10
• C) $11.10
• D) $11.30

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Definitions:

Ceruminous

Related to special sweat glands in the ear canal that produce earwax, which helps to protect and lubricate the ear.

Sebaceous

Relating to or denoting glands in the skin that secrete sebum into hair follicles.

Mammary

Pertaining to the mammary glands, which are the milk-producing glands located in the breasts of female mammals.

Cochlea

A spiral-shaped cavity in the inner ear that plays a crucial role in the sense of hearing by converting sound vibrations into neural signals.