Reamer Corporation Uses a Predetermined Overhead Rate Based on Machine-Hours

question 247

Multiple Choice

Reamer Corporation uses a predetermined overhead rate based on machine-hours to apply manufacturing overhead to jobs.The Corporation has provided the following estimated costs for next year: Reamer estimates that 500 direct labor-hours and 1,000 machine-hours will be worked during the year.The predetermined overhead rate per hour will be:

• A)$6.80 per machine-hour
• B)$6.00 per machine-hour
• C)$3.00 per machine-hour
• D)$3.40 per machine-hour

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Definitions:

Homo Sapiens Idaltu

An extinct subspecies of Homo sapiens that existed about 160,000 years ago, known from fossils found in the Middle Awash area of Ethiopia.

Neandertals

Extinct species or subspecies of archaic humans who lived in Eurasia until about 40,000 years ago, known for their distinct morphology and DNA differences from modern humans.

Human Evolution

The lengthy process of change by which people originated from apelike ancestors, characterized by developments in physical form and behavior.

Dead-End

A situation, place, or method that offers no possibility of further progress.