Exhibit 6-4 Refer to Exhibit 6-4

question 90

Multiple Choice

Exhibit 6-4 Refer to Exhibit 6-4.With reference to Graph A,at a price of $10,total revenue equals:

• A) $200.
• B) $400.
• C) $500.
• D) $1,000.

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Definitions:

Predetermined Overhead Rate

An estimated rate used to allocate manufacturing overhead costs to individual units of production, based on a chosen activity base.

Direct Labor-Hours

The total hours worked by employees who are directly involved in the production process, used as a basis for assigning labor costs to products.

Machine-Hours

A measure of production time, quantified in hours, that machinery is operating to perform work.

Machining Department

A specialized division within a manufacturing operation that performs machining processes, such as cutting, shaping, or drilling materials.