Davey Corporation Is Preparing Its Manufacturing Overhead Budget for the Fourth

question 156

Multiple Choice

Davey Corporation is preparing its Manufacturing Overhead Budget for the fourth quarter of the year. The budgeted variable manufacturing overhead rate is $3.00 per direct labor-hour; the budgeted fixed manufacturing overhead is $66,000 per month, of which $10,000 is factory depreciation. If the budgeted direct labor time for October is 6,000 hours, then the total budgeted manufacturing overhead for October is:

• A)$28,000
• B)$56,000
• C)$74,000
• D)$84,000

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Definitions:

Contingent Occurrences

Events that happen dependent on certain conditions or situations, often in a causal relationship.

Neutral Stimulus

A neutral stimulus is initially unrelated and unresponsive to any specific response until it becomes associated with a conditioned stimulus in classical conditioning.

Conditioned Stimulus

A previously neutral stimulus that, after becoming associated with the unconditioned stimulus, eventually comes to trigger a conditioned response.

Reinforcer Stimulus

A stimulus that increases the likelihood of a behavior by providing a rewarding outcome.