Exhibit 19-7 the Following Figures Represent 100% Capacity for Starr

question 92

Multiple Choice

Exhibit 19-7 The following figures represent 100% capacity for Starr Manufacturing:
Starr Manufacturing normally produces at 100% capacity. During the month of October, the company started and completed 10,000 units of product, using variable manufacturing overhead costs of $20,000. The company used 6,400 direct labor hours in October instead of the 6,000 hours expected for the activity level achieved.
-Refer to Exhibit 19-7. Based on the information above, the overhead rate used to apply variable manufacturing overhead to Work-in-Process is:

• A) $0.80 per unit produced
• B) $1.20 per unit produced
• C) $1.20 per direct labor hour
• D) $3.00 per direct labor hour

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Definitions:

Enols

Organic compounds characterized by a carbon-carbon double bond directly adjacent to a hydroxyl group, serving as intermediates in various reactions.

Organic Product

A compound or substance that has been derived from a living organism and contains carbon atoms.

Iminium Salt

A compound derived from the addition of an amine to a carbonyl compound, forming a positively charged nitrogen atom.

Alkyl Halide

A compound containing a halogen atom covalently bonded to an alkyl group; also known as a haloalkane.