Metro Corporation Uses a Predetermined Overhead Rate of $20 Per

question 30

Multiple Choice

Metro Corporation uses a predetermined overhead rate of $20 per machine hour. In deriving this figure, the company's accountant used:

• A) a denominator of budgeted machine hours for the current accounting period.
• B) a denominator of actual machine hours for the current accounting period.
• C) a denominator of actual machine hours for the previous accounting period.
• D) a numerator of budgeted machine hours for the current accounting period.
• E) a numerator of actual machine hours for the current accounting period.

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Definitions:

Insurance Advance

A payment made in advance by an insurance company, typically for claims or benefits before the final settlement.

Secretary's Salary

The compensation paid to an administrative professional for performing secretarial and administrative duties.

Chart Of Accounts

An organized list of all accounts in a business entity's financial statements, used to classify and record financial transactions.

Debit And Credit

Accounting terms representing increases or decreases in accounts, used to record transactions in the double-entry bookkeeping system.