The Predetermined Overhead Rate for Manufacturing Overhead for 2016 Is

question 36

Multiple Choice

The predetermined overhead rate for manufacturing overhead for 2016 is $4.00 per direct labor hour.Employees are expected to earn $5.00 per hour and the company is planning on paying its employees $100,000 during the year.However,only 75% of the employees are classified as "direct labor." What was the estimated manufacturing overhead for 2016?

• A) $60,000.
• B) $75,000.
• C) $80,000.
• D) $93,750.

---

Definitions:

Maximize Profits

The process of increasing the difference between total revenues and total costs to achieve the highest possible earnings.

Output Level

The quantity of goods or services produced by a firm or industry within a specific time frame.

Marginal Revenue

The additional income received from selling one more unit of a good or service, crucial for decision-making in output levels.

Marginal Cost

The price of creating one more unit of a product or service.