Kris Company Calculates Its Predetermined Rates Using Practical Volume, Which

question 7

Multiple Choice

Kris Company calculates its predetermined rates using practical volume, which is 325,000 units.The standard cost system allows 3 direct labor hours per unit produced.Overhead is applied using direct labor hours.The total budgeted overhead is $4,260,000, of which $994,000 is fixed overhead.The actual results for the year are as follows:

-
The predetermined fixed overhead rate is

• A) $3.35 per direct labor hour.
• B) $1.02 per direct labor hour.
• C) $5.50 per direct labor hour.
• D) $4.00 per direct labor hour.
• E) None of these.

Comprehend the factors influencing world population projections.

Grasp the principle of energy demand variability.

Examine the effects of living standards on energy use and birthrates.

Understand the economics behind electricity generation costs.

---

Definitions:

Present Value

The present worth of a sum of money or series of cash flows expected in the future, calculated using a particular rate of return.

Interest Rate

The percentage of a sum of money charged for its use, indicating the cost of borrowing money or the return on invested savings.

Interest Rate

The cost of borrowing money or the return on investment, typically expressed as a percentage of the sum borrowed or invested per year.

Undertake Project

To begin or commit to a planned series of actions or tasks.