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

question 31

Multiple Choice

(Appendix 11A) The Forbes Corporation uses a standard cost system in which overhead costs are applied to products on the basis of standard direct labor-hours (DLHs) .The following data applied to the company's activities for June: The fixed component of the predetermined overhead rate for June is:

• A)$3.00 per DLH
• B)$3.23 per DLH
• C)$3.78 per DLH
• D)$3.46 per DLH

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Definitions:

Fixed Inputs

Resources used in production that don't change in quantity as the level of production increases or decreases.

Cost of Capital

The cost of capital represents the return rate that investors expect of a company to generate from its projects to be worth the risk of the investment.

Accountants

Professionals who manage and examine financial records for individuals, companies, or organizations.

Economists

Professionals who study the production, distribution, and consumption of goods and services, analyzing how economies work and how economic agents interact.