(Appendix 11A)Pohl Corporation Uses a Standard Cost System in Which

question 71

Multiple Choice

(Appendix 11A) Pohl Corporation uses a standard cost system in which manufacturing overhead is applied on the basis of standard machine-hours.For June, the company's manufacturing overhead flexible budget showed the following total budgeted costs at a denominator activity level of 20, 000 machine-hours: During June, 17, 000 machine-hours were used to complete 13, 000 units of product, and the following actual total overhead costs were incurred: At standard, each unit of finished product requires 1.4 hours of machine time. The total predetermined overhead rate per machine-hour for June was:

• A)$2.57 per machine-hour
• B)$1.30 per machine-hour
• C)$2.80 per machine-hour
• D)$3.15 per machine-hour

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Definitions:

Cash Disbursement

The payment of cash from a business or individual to settle obligations.

Cash Collection

The process of receiving and processing payments from customers or clients for goods or services rendered.

Restrictive Covenant

Clauses in contracts that restrict or limit one party from engaging in certain activities, often to protect business interests or property value.

Debt Contract

A legal agreement outlining the terms under which money has been borrowed and must be repaid, including the interest rate and maturity date.