Stopher Incorporated Makes a Single Product--A Cooling Coil Used in Commercial

question 146

Multiple Choice

Stopher Incorporated makes a single product--a cooling coil used in commercial refrigerators.The company has a standard cost system in which it applies overhead to this product based on the standard machine-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)$1.67 per machine-hour
• B)$1.81 per machine-hour
• C)$1.76 per machine-hour
• D)$1.19 per machine-hour

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Definitions:

Closing Entries

Journal entries made at the end of an accounting period to transfer the balances of temporary accounts to permanent accounts and prepare the company's books for the next period.

Accounting Cycle

A sequence of steps in processing financial transactions, from the initial recording to the preparation of financial statements, usually completed over a specific period.

General Journal

A bookkeeping ledger that records each financial transaction of a company in chronological order.