The Following Equation $\frac{\text { Number in Subset }}{\text { Total number }} * \text { Constant }(100,000)$

question 6

Multiple Choice

The following equation, $\frac{\text { Number in Subset }}{\text { Total number }} * \text { Constant }(100,000)$ , is the derivation for ______.

• A) rate
• B) percentage
• C) ratio
• D) proportion

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Definitions:

Departmental Predetermined Rates

Rates used to allocate departmental overhead costs, established in advance based on expected costs and activity levels.

Machine-Hours

A measurement unit representing the operational time of a machine, typically used in manufacturing to allocate costs based on usage.

Selling Price

Selling Price is the amount a buyer pays to purchase an item or service from a seller.

Predetermined Overhead Rate

An estimated charge used to apply manufacturing overhead to individual products or job orders, calculated in advance of the period.