National Inc

question 54

Multiple Choice

National Inc.manufactures two models of CMD that can be used as cell phones,MPX,and digital camcorders.
National uses a volume-based costing system to apply factory overhead based on direct labor dollars.The unit prime costs of each product were as follows:
National's controller had been researching activity-based costing and decided to switch to it.A special study determined National's two products have the following budgeted activities:
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:

Correlation Coefficients

A statistical measure that indicates the extent to which two or more variables fluctuate together, ranging from -1 to 1 where 1 means a perfect positive correlation and -1 means a perfect negative correlation.

Accurate Predictions

Forecasts or guesses that accurately match or describe future outcomes or events based on available data or analysis.

Correlation Coefficients

Correlation coefficients are statistical measures that quantify the degree to which two variables move in relation to each other, indicating the strength and direction of their relationship.

Accurate Predictions

Precise forecasts or projections about future events or outcomes, based on data or analysis.