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

question 51

Multiple Choice

Harootunian Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for the current year on the following data: Recently, Job T629 was completed with the following characteristics:
The predetermined overhead rate is closest to:

• A) $8.10 per machine-hour
• B) $2.10 per machine-hour
• C) $3.90 per machine-hour
• D) $6.00 per machine-hour

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Definitions:

Imperfect Competitor

An entity in a market that does not hold enough power to dictate the conditions of the market but can influence the price and output of its goods to some extent.

MRP

Marginal Revenue Product, the additional revenue generated from employing one more unit of a factor of production.

Unit of Input

The smallest measure of an input (like labour, materials) used in the production of goods or services.

Complementary Resources

Assets or inputs that are used together with another resource to produce a good or service, enhancing each other's value in the process.