Answer the Following Questions Using the Information Below:
Comfort Manufacturing

question 35

Multiple Choice

Answer the following questions using the information below:
Comfort Manufacturing is a small textile manufacturer using machine-hours as the single indirect-cost rate to allocate manufacturing overhead costs to the various jobs contracted during the year. The following estimates are provided for the coming year for the company and for the Winton High School band jacket job.
$\begin{array}{llc}&\text { Company }&\text { Winton High School Job }\\\text { Direct materials } & \$ 40,000 & \$ 2,000 \\\text { Direct labor } & \$ 10,000 & \$ 400 \\\text { Manufacturing overhead costs } & \$ 45,000 & \\\text { Machine-hours } & 100,000 \mathrm{mh} & 900 \mathrm{mh}\end{array}$
-For Comfort Manufacturing,what is the annual manufacturing overhead cost-allocation rate?

• A) $0.50
• B) $0.80
• C) $0.45
• D) $33.33

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Definitions:

Intangible Outputs

Outputs or results of a process that cannot be physically touched or measured in traditional ways, often relating to services, experiences, or intellectual property.

Upstream Costs

Expenses incurred in the early stages of production, such as exploration and extraction in the oil and gas industry; they can include costs associated with locating natural resources and preparing them for processing.

Merchandising Entity

A business that purchases finished goods for resale, making a profit on the difference between buying and selling prices.

Intangible Outputs

Non-physical results produced by an organization, such as customer satisfaction, brand reputation, or intellectual property.