The Predetermined Manufacturing Overhead Rate for 2016 Was $4

question 51

Multiple Choice

The predetermined manufacturing overhead rate for 2016 was $4.00 per direct labor hour;employees were paid $5.00 per hour.If the estimated direct labor cost was $75,000,what was the estimated manufacturing overhead?

• A) $15,000.
• B) $60,000.
• C) $75,000.
• D) $93,750.

Understand and apply basic principles of budgeting and forecasting.

Calculate production quantities and purchasing requirements based on sales forecasts.

Understand the impact of inventory policies and material requirements on the budget.

Evaluate budget variances and their implications for business performance.

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Definitions:

Functional Currency

The primary currency of the primary economic environment in which an entity operates and carries out its transactions.

Exchange Rate Fluctuations

Variations in the value of one currency in relation to another, affecting the relative price of goods and services between countries and impacting international trade and investments.

Currency Hedge

A financial strategy used to minimize or manage the risks associated with changes in currency exchange rates affecting investments or transactions.

Exchange Rate

The price of one currency in terms of another currency, used for converting one currency into another.