Bella,IncManufactures Two Kinds of Bags-Totes and Satchels Calculate the Predetermined Overhead Allocation Rate

question 158

Multiple Choice

Bella,Inc.manufactures two kinds of bags-totes and satchels.The company allocates manufacturing overhead using a single plantwide rate with direct labor cost as the allocation base.Estimated overhead costs for the year are $25,750.Additional estimated information is given below. $$\begin{array} { | l | r | r | } \hline & \text { Totes } & \text { Satchels } \\\hline \text { Direct materials cost per unit } & \$ 33 & \$ 44 \\\hline \text { Direct labor cost per unit } & \$ 52 & \$ 60 \\\hline \text { Number of units } & 520 & 370 \\\hline\end{array}$$ Calculate the predetermined overhead allocation rate.(Round your answer to two decimal places.)

• A)95.23%
• B)52.29%
• C)86.21%
• D)1.49%

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Underlying Asset

An asset upon which a derivative's price is based, ranging from commodities and currencies to stocks and bonds.

Call Price

The price at which a callable bond can be redeemed by the issuer before its maturity date, typically higher than the face value.

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Gamma

The curvature of an option pricing function (as a function of the value of the underlying asset).