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

question 221

Multiple Choice

Use the information below to answer the following question(s) .
The following information was gathered for the Buckley Corporation for the most recent year. Manufacturing overhead is allocated using direct labour hours.

-What is the company's predetermined manufacturing overhead rate at Buckley Corporation?

• A) $13.50 per direct labour hour
• B) $12.02 per direct labour hour
• C) $12.79 per direct labour hour
• D) $12.69 per direct labour hour

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Definitions:

Contribution Margin

It is the difference between the sales revenue of a product and its variable costs. The contribution margin represents the portion of sales revenue that is not consumed by variable costs.

Behaviour

The actions or reactions of a person or system in response to external or internal stimuli.

Contribution Margin

The amount remaining from sales revenue after variable expenses have been deducted, contributing to covering fixed expenses and profit.

Variable Expenses

Expenditures that change in direct relation to production levels or sales quantities.