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:

Ethnocentric Thinking

The belief in the superiority of one's own ethnic group or culture, often accompanied by a dismissal or devaluation of other cultures.

Outgroup Members

Individuals who are perceived as not belonging to one's own group, often seen as different or separate from the in-group.

Reciprocity Norm

A social norm that dictates that individuals should return the favor or kindness that others have done for them.

Social Influence Technique

Strategies or methods used to change or influence the attitudes, behaviors, or perceptions of others through social interaction.