Carlson Company Uses a Predetermined Rate to Apply Overhead

question 21

Multiple Choice

Carlson Company uses a predetermined rate to apply overhead.At the beginning of the year, Carlson estimated its overhead costs at $240,000, direct labor hours at 40,000, and machine hours at 10,000.Actual overhead costs incurred were $249,280, actual direct labor hours were 41,000, and actual machine hours were 11,000. What is the predetermined overhead rate per machine hour for Carlson?

• A) $ 6.08
• B) $ 5.85
• C) $24.00
• D) $22.66

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Definitions:

Stereotype

A widely held but fixed and oversimplified image or idea of a particular type of person or thing.

Perceive Distinctions

The process of recognizing or identifying differences or variations between things or concepts.

Category

A class or division of people or things regarded as having particular shared characteristics.

Stereotype

A common and simplistic representation or belief about a specific kind of person or object that is firmly maintained.