(Appendix 10A) Fredin Incorporated Makes a Single Product--An Electrical Motor

question 88

Multiple Choice

(Appendix 10A) Fredin 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) $2.68 per labor-hour
• B) $3.02 per labor-hour
• C) $2.93 per labor-hour
• D) $2.41 per labor-hour

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Definitions:

Catch Sizes

The amount or volume of fish or seafood harvested from the sea or freshwater bodies in a single fishing trip or period.

ITQs

Individual Transferable Quotas, a system used in fishery management whereby individual operators are given the right to catch a specified share of the total allowable catch for a particular fishery.

Pacific Halibut

A large flatfish native to the North Pacific Ocean, valued for its culinary uses and recreational fishing interest.

Market Price

The current price at which a good or service can be bought or sold in a marketplace, determined by supply and demand dynamics.