Use the Information Below to Answer the Following Question(s)

question 265

Multiple Choice

Use the information below to answer the following question(s) .
Jim's Computer Products manufactures keyboards for computers. In June, the two production departments had budgeted allocation bases of 10,000 machine hours in Department 1 and 5,000 direct manufacturing labour hours in Department 2. The budgeted manufacturing overheads for the month were $34,500 and $37,500, respectively. For Job 501, the actual costs incurred in the two departments were as follows:

Job 501 incurred 1,000 machine hours in Department 1 and 300 manufacturing labour hours in Department 2. The company uses a budgeted departmental overhead rate for applying overhead to production.
-What is the predetermined overhead rate for Department 2?

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Definitions:

Misinformation Effect

Occurs when misleading information has corrupted one’s memory of an event.

Retrieval Failure

The inability to recall information from memory, often due to the lack of proper cues or the decay of memory traces.

Encoding Failure

The inability to form new memories because the information was not effectively encoded into long-term memory.

Nonsense Syllables

Strings of letters that do not follow grammatical rules and do not have meaning, used in memory and learning experiments.