SpaSpring Corporation, Which Applies Overhead to Production on the Basis

question 75

Multiple Choice

SpaSpring Corporation, which applies overhead to production on the basis of machine hours, reported the following data for the period just ended: Actual units produced: 12,000
Actual fixed overhead incurred: $730,000
Actual machine hours worked: 60,000
Budgeted fixed overhead: $720,000
Planned level of machine-hour activity: 50,000
If Spring estimates four hours to manufacture a completed unit, Spring's standard fixed overhead rate per machine hour would be:

• A)$12.00.
• B)$14.40.
• C)$14.60.
• D)$15.00.
• E)$20.00.

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Definitions:

Cyclic AMP

A secondary messenger important in many biological processes, formed from ATP by the action of adenylyl cyclase.

Second Messenger

A substance (e.g., cyclic AMP or calcium ions) that relays a message from a signaling molecule (the first messenger) bound to a cell-surface receptor; leads to some change in the cell.

Protein Kinase A

An enzyme that transfers phosphate groups from ATP to specific proteins, playing a key role in the regulation of cellular processes.

Tyrosine Kinases

A family of enzymes that catalyze the transfer of a phosphate group from ATP to a tyrosine residue in a protein, playing key roles in signal transduction pathways.