Sawyer Manufacturing Company Uses a Predetermined Overhead Rate Based on Direct

question 109

Multiple Choice

Sawyer Manufacturing Company uses a predetermined overhead rate based on direct labour hours to apply manufacturing overhead to jobs.Last year,the company worked 57,000 actual direct labour hours and used 40,000 machine hours.The company had estimated that it would work 55,000 direct labour hours using 44,000 machine hours during the year and incur $330,000 of manufacturing overhead cost.What was the company's manufacturing overhead applied for the year?

• A) $345,000.
• B) $342,000.
• C) $330,000.
• D) $300,000.

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Definitions:

Proximate Cause

The primary cause of an injury in law, without which the injury would not have occurred, determining legal liability.

Cause In Fact

In tort law, the relationship between the unreasonable conduct and the injury to the innocent party, whether the injury was or was not foreseeable. Cause in fact is also referred to as actual cause.

Assumption Of Risk

A legal principle where a person knowingly exposes themselves to certain risks and is thus precluded from suing for injuries resulting from those risks.

Negligence

A failure to behave with the level of care that someone of ordinary prudence would have exercised under the same circumstances.