A Company Estimates That Overhead Costs for the Next Year $\bold{\text{(Round your answer to two decimal places.)}}$

question 79

Multiple Choice

A company estimates that overhead costs for the next year will be $8,320,000 for indirect labor and $155,500 for factory utilities.The company uses machine hours as its overhead allocation base.If 400,000 machine hours are planned for this next year,what is the company's plantwide overhead rate? $\bold{\text{(Round your answer to two decimal places.) }}$

• A)$0.05 per machine hour.
• B)$21.19 per machine hour.
• C)$20.80 per machine hour.
• D)$0.39 per machine hour.
• E)$2.57 per machine hour.

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Definitions:

Hydroponics

Growing plants in an aerated solution of dissolved inorganic minerals (i.e., without soil).

Aerated Water

Water that has been infused with air or gas, often carbon dioxide, to create a bubbly or effervescent texture.

Mycorrhizae

Mycorrhizae refer to the symbiotic relationship between certain fungi and the roots of plants, enhancing nutrient absorption and resistance to pathogens.

Nodules

Swellings on the roots of plants, such as legumes, in which symbiotic nitrogen-fixing bacteria (rhizobia) live.