Strong Company Applies Overhead Based on Machine Hours

question 75

Multiple Choice

Strong Company applies overhead based on machine hours. At the beginning of 20x1, the company estimated that manufacturing overhead would be $500,000, and machine hours would total 20,000. By 20x1 year-end, actual overhead totaled $525,000, and actual machine hours were 25,000. On the basis of this information, the 20x1 predetermined overhead rate was:

• A) $0.04 per machine hour.
• B) $0.05 per machine hour.
• C) $20 per machine hour.
• D) $21 per machine hour.
• E) $25 per machine hour.

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Definitions:

Gestalt Therapy

A form of psychotherapy focusing on self-awareness and understanding the present context of a patient's life, emphasizing wholeness and integration.

Client-Centered Therapy

A humanistic therapy developed by Carl Rogers focusing on providing a supportive emotional environment where clients can achieve self-awareness and self-acceptance.

Visual Perceptions

The ability to interpret the surrounding environment by processing information contained in visible light.

Cognitive Therapy

A type of psychotherapy aimed at changing negative patterns of thought to alter behavior and emotions.