Here Are Selected Data for Boston Bracing Company: If

question 96

Multiple Choice

Here are selected data for Boston Bracing Company: If the company allocates overhead based on direct labor cost, what is the predetermined manufacturing overhead rate?

• A)78% of direct labor cost
• B)128% of direct labor cost
• C)105% of direct labor cost
• D)95% of direct labor cost

---

Definitions:

Check Clearing

Check clearing is the process through which banks verify and process the transfer of funds from the check issuer's account to the recipient's account, finalizing the transaction.

Transit Float

The time difference between when a payment is made and when it is available in the recipient's account.

Processing Float

The time delay between when a check is written and when it is actually deducted from the payer's account, often utilized in managing company cash flows.

Cash Balances

Cash balances refer to the amount of currency, coins, and balances in checking and savings accounts that a company holds at any given time.