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:

Interest Rate

The percentage at which interest is paid by a borrower for the use of money that they borrow from a lender or the rate earned on a deposit or investment.

Present Value

The present value of a future amount of money or series of cash flow using a given rate of return.

Interest Rate

The fee, quantified as a percentage relative to the principal, levied by a lender on a borrower to utilize assets.

Rule of 70

A formula used to estimate the number of years required for an investment or the economy's output to double, calculated by dividing 70 by the annual growth rate.