Use the Following Information to Answer Item(s) Below

question 20

Multiple Choice

Use the following information to answer item(s) below.
Meesen Inc. operates two support departments (A and B) and two producing departments (C and D) . Budgeted costs and normal activity levels are given below. The costs of Department A are allocated on the basis of number of employees, and the costs of Department B are allocated on the basis of maintenance hours.
-If Department D uses direct labour hours to allocate overhead to units of product, the overhead rate per direct labour hour for Department D would be

• A) $22.93.
• B) $18.13.
• C) $16.80.
• D) $16.00.

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Definitions:

Forward Rate

An agreed upon rate for a financial transaction that will occur at a future date, used in forward contracts.

Zero-coupon Bond

A debt security that does not pay interest but is traded at a deep discount, rendering profit at maturity when the bond is redeemed for its face value.

Semi-annually

Occurring twice a year.

Effective Annual Yield

Annualized interest rate on a security computed using compound interest techniques.