Barr MfgProvided the Following Information from Its Accounting Records for 2022

question 21

Multiple Choice

Barr Mfg.provided the following information from its accounting records for 2022: $\begin{array}{lr}\text { Estimated production } & 60,000 \text { labor hours } \\\text { Actual production } & \$ 6,000 \text { labor hours } \\\text { Estimated overhead } & \$ 900,000 \\\text { Actual overhead } & \$ 870,000\end{array}$ How much is the predetermined overhead rate if Barr bases the rate on direct labor hours?

• A)$16.07 per hour
• B)$15.00 per hour
• C)$14.50 per hour
• D)$15.54 per hour

Understand the principle of revenue recognition and its application to FOB shipping and destination.

Analyze and calculate cash flows from customer transactions.

Understand the impact of credit card sales and discounts on financial statements.

Recognize effective internal controls for cash management.

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Definitions:

Export Demand

The desire and willingness of foreign buyers to purchase goods and services from a country.

Domestic Demand

The total demand for goods and services within a country, including both consumer and business purchases.

Total Demand Curve

Represents the total quantity of a good that all consumers in a market are willing to purchase at different price levels.

Price Elasticity

A measure of how the quantity demanded of a good or service changes in response to changes in its price.