The Silver Corporation Uses a Predetermined Overhead Rate to Apply

question 58

Multiple Choice

The Silver Corporation uses a predetermined overhead rate to apply manufacturing overhead to jobs.The predetermined overhead rate is based on labor cost in Dept.A and on machine-hours in Dept.B.At the beginning of the year,the Corporation made the following estimates:
What predetermined overhead rates would be used in Dept.A and Dept.B,respectively?

• A) 67% and $3.00
• B) 150% and $5.00
• C) 150% and $3.00
• D) 67% and $5.00

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Definitions:

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price level in a given time period.

Direct;Inverse

Direct refers to a relationship between two variables that move in the same direction, while inverse indicates a relationship where one variable increases as the other decreases.

Inferior Goods

Goods for which demand decreases as the income of consumers increases, opposite to normal goods where demand increases with rising income.

Ramen Noodles

A fast-cooking type of noodle dish, often sold in packets or cups, known for its convenience and low cost, originating from Japan.