Sutherland Company Listed the Following Data for 2019 Assuming Sutherland Applied Overhead Based on Direct Labor Hours, the Budgeted

question 96

Multiple Choice

Sutherland Company listed the following data for 2019: $\begin{array}{lr}\text { Budgeted factory overhead } & \$ 2,100,000 \\\text { Budgeted direct labor hours } & 89,000 \\\text { Budgeted machine hours } & 51,000 \\\text { Actual factory overhead } & 2,201,000 \\\text { Actual direct labor hours } & 83,700 \\\text { Actual machine hours } & 48,900\end{array}$ Assuming Sutherland applied overhead based on direct labor hours, the company's predetermined overhead rate for 2019 is (round to two significant digits) :

• A)$23.20 per direct labor hour.
• B)$23.60 per direct labor hour.
• C)$22.24 per direct labor hour.
• D)$22.50 per direct labor hour.
• E)$22.85 per direct labor hour.

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Definitions:

Foreign Affairs

Government policies and activities related to interactions with other countries, including diplomacy, trade agreements, and conflict resolution.

Iran-Contra

A political scandal in the United States during the Reagan Administration involving the secret sale of arms to Iran and the illicit diversion of the proceeds to fund Contra rebel groups in Nicaragua.

Arms-For-Hostages

Refers to the clandestine arrangement of trading arms for the release of hostages, notably associated with the Iran-Contra affair in the 1980s under the Reagan administration.

Oliver North

A former United States Marine Corps officer who was involved in the Iran-Contra Affair, a political scandal involving the secret sale of weapons to Iran and the diversion of funds to support Contra rebels in Nicaragua.