Dehner Corporation Uses a Job-Order Costing System with a Single

question 62

Multiple Choice

Dehner Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on direct labor-hours. The company based its predetermined overhead rate for the current year on the following data:
Recently, Job P951 was completed with the following characteristics:

-The predetermined overhead rate is closest to:

• A) $2.40 per direct labor-hour
• B) $3.00 per direct labor-hour
• C) $8.40 per direct labor-hour
• D) $5.40 per direct labor-hour

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Definitions:

Benchmark Return

The standard against which the performance of a security, mutual fund, or investment manager can be measured.

Passive Portfolio

An investment strategy that seeks to replicate and hold a market index or benchmarks, typically requiring less frequent trading and lower fees.

Market Timing

Asset allocation in which the investment in the market is increased if one forecasts that the market will outperform T-bills.

Alpha Forecasts

Estimates or predictions of the active return on an investment, indicating how a security or portfolio is expected to perform relative to a benchmark index.