Miramar Industries Manufactures Two Products: a and B

question 77

Multiple Choice

Miramar Industries manufactures two products: A and B.  The manufacturing operation involves three overhead activities-production setup, material handling, and general factory activities.  Miramar uses activity-based costing to allocate overhead to products.  An activity analysis of the overhead revealed the following estimated costs and activity bases for these activities: What is the activity rate for general overhead?

• A) $4.00 per direct labor hour
• B) $60.00 per direct labor hour
• C) $6.67 per direct labor hour
• D) $10.00 per direct labor hour

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Definitions:

Managed-care Organizations

Health care entities that integrate the financing and delivery of medical services to subscribers, aiming to reduce unnecessary health care costs.

Containing Costs

involves measures or strategies employed to control, reduce, or keep expenses within certain limits or budgets.

Health Care Expenditures

The total amount of money spent on health care services, products, and medication by individuals, private entities, and governments.

GDP

Gross Domestic Product, the total value of all goods and services produced within a country's borders in a specific time period.