Using the Following Accounts and an Overhead Rate of 90

question 33

Multiple Choice

Using the following accounts and an overhead rate of 90% of direct labor cost, determine the amount of applied overhead.

• A) $79,200.
• B) $167,200.
• C) $34,320.
• D) $88,000.
• E) $35,376.

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Definitions:

Assets

The resources owned by a business.

Residual Income

The amount of income that an individual or company has after all personal debts and expenses, including a mortgage, have been paid.

Operating Income

Earnings before interest and taxes (EBIT), reflecting a company's profit from its core business operations.

Divisional Assets

Resources and property allocated to a specific division within a larger organization, instrumental in generating revenue.