In a Job-Order Costing System That Is Based on Machine-Hours,which

question 136

Multiple Choice

In a job-order costing system that is based on machine-hours,which of the following formulas is correct?

• A) Predetermined overhead rate = Actual manufacturing overhead ÷ Actual machine-hours
• B) Predetermined overhead rate = Actual manufacturing overhead ÷ Estimated machine-hours
• C) Predetermined overhead rate = Estimated manufacturing overhead ÷ Estimated machine-hours
• D) Predetermined overhead rate = Estimated manufacturing overhead ÷ Actual machine-hours

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Definitions:

Economic Profit

The difference between total revenues and total costs, taking both explicit and implicit costs into account, indicating the additional income over the opportunity cost of capital.

Industry Z

An unspecified sector of the economy, used as a placeholder to discuss economic concepts without specifying an industry.

Output Expansion

The increase in the production of goods or services by a firm or economy over time.

Market Entry

The strategy or process of introducing new products or services into an existing or new market.