Land Acreage with an Original Value of $44,000 Increases in Value

question 7

Multiple Choice

Land acreage with an original value of $44,000 increases in value to $55,000 in 7 years.
a) Find the increase in the value of the land.
b) What is the ratio of the increase in value to the original value of the land?

• A) a) $11,000; b) \(\frac { 4 } { 1 }\)
• B) a) $99,000; b) \(\frac { 1 } { 4 }\)
• C) a) $11,000; b) \(\frac { 1 } { 4 }\)
• D) a) $99,000; b) \(\frac { 4 } { 1 }\)
• E) a) $11,000; b) \(\frac { 1 } { 8 }\)

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Definitions:

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead costs to individual units of production, based on estimated costs and activity levels.

Manufacturing Departments

The sections of a manufacturing organization dedicated to specific production activities or processes.

Total Job Cost

The complete cost associated with a specific job or project, including materials, labor, and overhead.

Predetermined Overhead Rate

The rate used to allocate manufacturing overhead to individual products or job orders, calculated before the period begins based on estimated costs and activity levels.