Nadelson Incorporated Makes a Single Product--An Electrical Motor Used in Many

question 23

Multiple Choice

Nadelson Incorporated makes a single product--an electrical motor used in many long-haul trucks.The company has a standard cost system in which it applies overhead to this product based on the standard labor-hours allowed for the actual output of the period.Data concerning the most recent year appear below:
The variable component of the predetermined overhead rate is closest to:

• A) $1.26 per labor-hour
• B) $1.20 per labor-hour
• C) $1.64 per labor-hour
• D) $1.57 per labor-hour

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