The Following Information Is Provided for the Year -Refer to the Figure

question 143

Multiple Choice

The following information is provided for the year:
$\begin{array}{lr}\text { Actual direct labour hours worked } & 36,000 \\\text { Budgeted overhead } & \$ 300,000 \\\text { Budgeted direct labour hours } & 30,000 \\\text { Actual overhead costs incurred } & \$ 360,000\end{array}$
-Refer to the figure.What is the actual overhead rate for applying manufacturing overhead?

• A)$7.14
• B)$7.50
• C)$10.00
• D)$10.50

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Definitions:

Fair Value

The estimated market value of an asset or liability based on current conditions and acknowledged by both buyer and seller.

Assets

Economic resources owned or controlled by a business or individual, expected to provide future benefits.

Complex Capital Structure

A corporate structure that features a mix of simple and complicated financial instruments, including multiple levels of debt and equity.

Convertible Bonds

Bonds issued by a corporation that can be converted into a predetermined number of shares of the company's stock at the discretion of the bondholder, usually at certain times during their life.