National Inc

question 59

Multiple Choice

National Inc. manufactures two models of CMD that can be used as cell phones, MPX, and digital camcorders.What is the overhead application rate using the firm's volume-based costing system (rounded to the nearest percent or cents) ?

• A)350 percent of direct labor cost.
• B)$51.89 per direct labor-hour.
• C)68 per cent of direct labor cost.
• D)5,189 percent of direct labor cost.
• E)5,110 percent of direct labor cost.

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Definitions:

Cash Receipts

Money received by a business, recorded in its financial statements, typically from transactions such as sales or services rendered.

Cash Sales

Transactions where payment is made in cash (or equivalent) at the time of sale, with no delay in payment.

Internal Control

Processes and procedures implemented by an organization to ensure the integrity of financial and accounting information, promote accountability, and prevent fraud.

Cash Remittances

Money transfers from one party to another, often sent by individuals working abroad to their family back home.