You Are Given the Following Information on Items A,B,C,and D

question 46

Multiple Choice

You are given the following information on items A,B,C,and D.

The weighted aggregate quantity index when 2005 is used as the base and prices are used as weights is

• A)67.956
• B)80
• C)125
• D)147.154

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Definitions:

Predetermined Overhead Rate

A rate used to charge manufacturing overhead cost to jobs that is established in advance for each period. It is computed by dividing the estimated total manufacturing overhead cost for the period by the estimated total amount of the allocation base for the period.

Special Order

A one-time order or contract that is outside of a company’s normal production or service offerings, often requiring special terms.

Variable Cost

Costs that vary directly with the level of production or volume of output.

Fixed Manufacturing Overhead

Costs associated with manufacturing that do not vary with the level of production, such as rent, salaries of permanent staff, and depreciation of factory equipment.