Q-Dot Manufacturing Uses a Predetermined Overhead Allocation Rate Based on Direct

question 39

Multiple Choice

Q-dot Manufacturing uses a predetermined overhead allocation rate based on direct labor hours. It has provided the following information for the year 2014: Based on the above information, calculate Q-dot's predetermined overhead allocation rate.

• A)$5.43 per machine hour
• B)76% of direct labor cost
• C)34% of direct materials cost
• D)$20 per direct labor hour

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Definitions:

Extraneous Variables

Variables outside of the independent variables being studied that can affect the outcome of an experiment, potentially confounding the results.

Independent Variable

The variable in an experiment that is manipulated or changed to observe its effect on a dependent variable.

Control Variables

Factors in an experiment that are kept constant to test the relative impact of the independent variable.

Control Group

In an experiment, the group that does not receive the treatment and is used as a benchmark to measure how the other tested groups compare.