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:

Fed

Refers to the Federal Reserve System, which is the central banking system of the United States, responsible for monetary policy.

Checkable Deposits

Deposits in a bank or other financial institution against which checks can be written or ATM or debit card transactions can be made.

Medium of Exchange

An instrument or system used to facilitate the sale, purchase, or trade of goods between parties, typically money in modern economies.

Store of Value

An asset that can be saved, retrieved, and exchanged in the future without depreciating significantly.