The Discount Rate Is the Interest Rate That

question 30

Multiple Choice

The discount rate is the interest rate that

• A)banks charge one another for loans.
• B)banks charge the Fed for loans.
• C)the Fed charges banks for loans.
• D)the Fed charges Congress for loans.

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Definitions:

Overapplied

A situation where the overhead allocated to goods produced exceeds the actual overhead incurred.

Predetermined Overhead Rate

An estimated overhead cost rate used to allocate overhead costs to products or job orders based on activity levels.

Factory Overhead

All indirect costs associated with the production process, such as utilities, maintenance, and salaries of production supervisors, which are not directly traceable to specific units.

Direct Labor Hours

The total hours worked by employees directly involved in manufacturing products or delivering services.