Ad-On International Is an Advertising Company

question 15

Multiple Choice

Ad-on International is an advertising company.It estimated the overhead costs for March,2014,to be $950,000 and direct labor hours to be 5,000 hours.In March,it incurred overhead costs of $1,150,000 and 5,100 labor hours.
-What is the predetermined overhead rate for March,2014?

• A)$186 per direct labor hour
• B)$190 per direct labor hour
• C)$225 per direct labor hour
• D)$230 per direct labor hour

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Definitions:

Lateral Inhibition

A neurological process where the firing rate of a neuron is decreased due to the activity of neighboring neurons, enhancing contrast in sensory perception.

Physiological Process

a biological function or activity in living organisms that is necessary for maintaining life, such as breathing, digestion, or nerve function.

Color Blindness

A visual impairment where one is unable to distinguish certain shades of color due to deficiency in the eyes' color-detecting molecules.

Shades

Variations or different tones of colors, often used to describe subtle differences in color.