Use the Information Below to Answer the Following Questions -Refer to the Table Above

question 1

Multiple Choice

Use the information below to answer the following questions.
Scott's Fencing constructs paling fences. During last month, the fencing division erected 4,000 metres of fencing. The costs incurred by the division were as follows: $$\begin{array} { l r } \text { Palings } & \$ 4,000 \\\text { Posts } & \$ 5,000 \\\text { Nails (no usage records) } & \$ 500 \\\text { Cement (no usage records) } & \$ 500 \\\text { Wear and tear on equip. } & \$ 2,000\end{array}$$
-Refer to the table above. The cost per metre of fencing is:

• A)$2.25.
• B)$2.75.
• C)$2.50.
• D)$3.00.

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Definitions:

Predetermined Overhead Rates

The estimated overhead rates used to assign manufacturing overhead costs to products or job orders, calculated before the period begins based on estimated costs and activity levels.

Machine-Hours

The total operating time of machinery used in the production process, expressed in hours, as a basis for allocating manufacturing overhead costs.

Forming

The process of shaping material into desired shapes by applying physical force or through the use of machinery.

Customizing

refers to tailoring products or services to meet specific customer needs or preferences.