Kelsh Company Uses a Predetermined Overhead Rate Based on Machine

question 94

Multiple Choice

Kelsh Company uses a predetermined overhead rate based on machine hours to apply manufacturing overhead to jobs.The company has provided the following estimated costs for next year:
$\begin{array}{|l|r|}\hline \text { Direct materials } & \$ 10,000 \\\hline \text { Direct labour } & 30,000 \\\hline \text { Sales commissions } & 40,000 \\\hline \text { Salary of production supervisor } & 20,000 \\\hline \text { Indirect materials } & 4,000 \\\hline \text { Advertising expenses } & 8,000 \\\hline \text { Rent on factory equipment } & 10,000 \\\hline\end{array}$
Kelsh estimates that 5,000 direct labour hours and 10,000 machine hours will be worked during the year.What will be the predetermined overhead rate per hour?

• A) $6.80.
• B) $6.40.
• C) $3.40.
• D) $8.20.

Describe the impact of the discount rate on present value calculations.

Understand the definitions of key financial concepts including present value, future value, discount rate, compounding, compound interest, and simple interest.

Apply the time value of money principle to real-life financial decision-making scenarios.

Explain the effects of time and rate of interest on the future value of investments.

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Definitions:

Cyclic GMP

Cyclic GMP (cGMP) is a secondary messenger important in many biological processes, including vision and vasodilation.

Water-Soluble Hormones

Hormones that are soluble in water, allowing them to circulate freely in the blood and interact with specific receptors.

Plasma Membrane

The bilayer of lipids surrounding the cell's cytoplasm, which controls the passage of elements into and out of the cell.

Chronic Hormone Secretion

The continuous or prolonged release of hormones into the bloodstream, affecting the body's functions over an extended period.