The Managers of Red Heart Draperies Are Planning for the Upcoming

question 69

Multiple Choice

The managers of Red Heart Draperies are planning for the upcoming year.In years past, the company has applied overhead based on direct labor costs.However, management believes that direct labor hours are a better basis for applying overhead and plans to use direct labor hours to apply overhead for the upcoming year. What is the predetermined overhead rate for the upcoming year (round all answers to the nearest cent) ?

• A)$18.60 per DLH
• B)$21.82 per DLH
• C)$1.17 per DLH
• D)$0.85 per DLH

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Definitions:

Parasites

Organisms that live on or within another organism (the host), from which they obtain nutrients at the host's expense.

Relative Frequency

The proportion of times a particular value occurs in relation to the total number of observations.

Distribution

The arrangement, frequency, or spread of something across a particular area or among a specified group.

Average

A statistic specifying the sum of the values that the items in a class have on a quantitative variable P, divided by the number of items.