Felton Quality Productions Uses a Predetermined Overhead Allocation Rate Based

question 144

Multiple Choice

Felton Quality Productions uses a predetermined overhead allocation rate based on machine hours. It has provided the following information for the year: $$\begin{array} { | l | r | } \hline \text { Actual manufacturing overhead costs incurred } & \$ 100,000 \\\hline \text { Manufacturing overhead costs allocated to production } & \$ 42,000 \\\hline \text { Actual direct materials cost } & \$ 220,000 \\\hline \text { Actual direct labor cost } & \$ 50,000 \\\hline \text { Actual machine hours } & 32,000 \text { hours } \\\hline\end{array}$$ Based on the above information, calculate the predetermined overhead allocation rate applied by Felton Quality. (Round your answer to the nearest cent.)

• A) $1.31 per machine hour
• B) $3.13 per machine hour
• C) $6.88 per machine hour
• D) $1.56 per machine hour

---

Definitions:

Exempt Property

Assets that are protected by law from being taken by creditors to satisfy debts.

Debtor's Home

The primary residence of an individual who owes money to creditors; it can be protected under certain bankruptcy laws.

Exempt Property

Property that a debtor is allowed to keep from creditors' claims in a bankruptcy proceeding, as defined by law, to ensure basic living standards.

Judgment Creditors

Individuals or entities entitled to collect a financial judgment from a debtor following a court ruling.