ABC Corporation Allocates Overhead Based on Direct Labor Cost

question 126

Multiple Choice

ABC Corporation allocates overhead based on direct labor cost.Assume ABC expects to incur a total of $1,025,000 in overhead costs and $820,000 in direct labor costs.Actual overhead costs incurred totaled $1,050,000 and actual direct labor costs totaled $800,100.ABC's predetermined overhead rate is closest to

• A)125% of direct labor cost.
• B)128% of direct labor cost.
• C)98% of direct labor costs.
• D)100% of direct labor costs.

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Definitions:

Glomerular Filtration Rate

A measure of how well the kidneys filter waste and excess fluid from the blood.

Efferent Arteriole

The small blood vessel that carries blood away from the glomerulus of the kidney after filtration.

Colloid Osmotic Pressure

The pressure exerted by plasma proteins on the capillary walls, important in maintaining the water balance between blood and interstitial fluid.

Hematuria

The presence of blood in urine, which can be a sign of various underlying conditions affecting the urinary tract or kidney.