Spring Corporation Bases Its Predetermined Overhead Rate on the Estimated

question 93

Multiple Choice

Spring Corporation bases its predetermined overhead rate on the estimated machine-hours for the upcoming year.Data for the upcoming year appear below: The predetermined overhead rate for the recently completed year was closest to:
$$\begin{array} { | l | r | l | } \hline \text { Estimated machine-hours } & 70,000 & \\\hline \text { Estimated variable } & \$ 6.68 & \begin{array} { l } \text { per machine } \\\text { hour }\end{array} \\\text { manufacturing overhead } & & \\\hline \begin{array} { l } \text { Estimated total fixed } \\\text { manufacturing overhead }\end{array} & \$ 1,283,800 & \\\hline\end{array}$$

• A) $6.68.
• B) $25.02.
• C) $25.59.
• D) $18.34.

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Definitions:

Decentration

The ability to consider multiple aspects of a situation simultaneously, an important cognitive development in children allowing more complex thought processes.

Concrete-Operational Children

A developmental stage in Piaget's theory, typically from ages 7 to 11, when children gain a better understanding of concrete events and logical operations but still struggle with abstract concepts.

Egocentric

The habit of interpreting all events and situations with regard to one's own personal perspective, neglecting the viewpoints or emotions of other people.

Transitivity

In logic and mathematics, a property of relations that states if relation A exists between B and C, and relation A also exists between C and D, then A must exist between B and D as well.