The Stable Utility Fund Has an Offering Price of $54

question 40

Multiple Choice

The Stable Utility Fund has an offering price of $54.11 and an NAV of $52.48.What is the front-end load percentage?

• A) 3.0 percent
• B) 3.1 percent
• C) 3.5 percent
• D) 3.8 percent
• E) 4.0 percent

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Definitions:

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead to individual units of production, based on estimated costs and activity levels.

Machine-Hours

A measure of the amount of time machines are used in the production process, often related to allocating manufacturing overhead costs.

Manufacturing Overhead

All the costs related to manufacturing that are not direct materials or direct labor expenses.

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead costs to products based on a planned level of activity or drivers, such as labor hours.