The Following Information Pertains to Yoder Corporation: Yoder Corporation

question 103

Multiple Choice

The following information pertains to Yoder Corporation: Yoder Corporation does not divide costs into fixed and variable components.Personnel costs are allocated based on the number of employees,and maintenance costs are allocated based on machine hours.
Predetermined overhead rates for fabrication and assembly are based on direct labour hours.
If the direct method is used to allocate support department costs,what is the predetermined overhead rate for the Fabrication Department (rounded to two decimal places) ?

• A)$5.40
• B)$7.28
• C)$24.78
• D)$28.80

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Definitions:

Stagflation

A period of either recession or stagnation accompanied by inflation.

Recessions

Times of short-term economic downturn characterized by decreased commerce and industrial production, typically recognized by a drop in Gross Domestic Product (GDP) for two consecutive quarters.

1920s

A period of ten years marked by significant economic growth and a vibrant cultural scene in the United States, commonly known as the "Roaring Twenties."

Last Recession

The most recent period of significant decline in economic activity across the economy, lasting more than a few months.