Arabica Manufacturing Company Uses a Predetermined Manufacturing Overhead Rate Based

question 10

Multiple Choice

Arabica Manufacturing Company uses a predetermined manufacturing overhead rate based on a percentage of direct labor cost. At the beginning of 2012, they estimated total manufacturing overhead costs at $1,050,000, and they estimated total direct labor costs at $840,000. What was the predetermined manufacturing overhead rate?

• A) 80% of direct labor cost
• B) $1.25 per direct labor hour
• C) 125% of direct labor cost
• D) $35.00 per direct labor hour

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Definitions:

Fixed Action Patterns

Innate, pre-programmed responses that an animal performs as a reaction to a specific stimulus.

Imprinting

A rapid learning process occurring early in the life of a social animal, wherein a specific behavior pattern is established.

Associative Learning

Acquired ability to associate two stimuli or between a stimulus and a response.

Behavior Change

involves the modification of human behaviors, often aiming at improving health, social, and environmental outcomes.