Wings Co Budgeted $555,600 Manufacturing Direct Wages, 2,315 Direct Labor Hours

question 142

Multiple Choice

Wings Co. budgeted $555,600 manufacturing direct wages, 2,315 direct labor hours, and had the following manufacturing overhead:If Wings uses a volume-based overhead rate based on direct labor hours, the manufacturing overhead for Job #971 is:

• A)$990.
• B)$1,020.
• C)$1,600.
• D)$3,460.
• E)$6,400.

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Definitions:

Long-term Interest Rates

Interest rates on loan agreements or debt instruments, like bonds, which are due in more than one year.

Market Risk Premium

The additional return expected by investors for taking on the risk of investing in the stock market over a risk-free asset.

Stock Beta

A measure of a stock's volatility in comparison to the overall market. A beta higher than 1 implies greater volatility.

Risk-free Interest Rate

The theoretical return of an investment with no risk of financial loss, typically represented by government bonds.