For 2018, Rest-Well Bedding Uses Machine-Hours as the Only Overhead

question 10

Multiple Choice

For 2018, Rest-Well Bedding uses machine-hours as the only overhead cost-allocation base. The direct cost rate is $6.00 per unit. The selling price of the product is $21.00. The estimated manufacturing overhead costs are $275,000 and estimated 40,000 machine hours. The actual manufacturing overhead costs are $350,000 and actual machine hours are 50,000.
Using job costing, the 2018 actual indirect-cost rate is ________.

• A) $7.00 per machine-hour
• B) $5.50 per machine-hour
• C) $8.75 per machine-hour
• D) $8.50 per machine-hour

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Definitions:

Internal Respiration

Exchange of oxygen and carbon dioxide between blood and tissue fluid.

Cellular Respiration

The process by which cells convert glucose and oxygen into ATP, releasing carbon dioxide and water.

Inspiration

Act of taking air into the lungs; inhalation.

Gases Exchange

The process of oxygen and carbon dioxide moving between the bloodstream and the lungs in animals, and the atmosphere and cells in plants.