Simplex Company Has the Following Estimated Costs for Next Year

question 11

Multiple Choice

Simplex Company has the following estimated costs for next year:
Simplex estimates that 10,000 direct labour and 16,000 machine hours will be worked during the year.If overhead is applied on the basis of machine hours,what will be the overhead rate per hour?

• A) $3.50.
• B) $6.94.
• C) $7.63.
• D) $8.56.

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Definitions:

Great Britain

An island in the North Atlantic off the northwest coast of continental Europe, comprising of the countries of England, Scotland, and Wales, and forming the largest part of the United Kingdom.

British Islands

A term that collectively refers to the islands that make up the United Kingdom along with certain other islands, including the Isle of Man and the Channel Islands.

Tidewater Areas

Regions near the coast affected by the tide, often characterized by wetlands and estuaries, historically significant in early American settlement and agriculture.

Massachusetts Bay Colony

An early English settlement established in 1630 in present-day Massachusetts, it was a major center for Puritanism and early American colonial life.