Acton Corporation,which Applies Manufacturing Overhead on the Basis of Machine-Hours,has

question 31

Multiple Choice

Acton Corporation,which applies manufacturing overhead on the basis of machine-hours,has provided the following data for its most recent year of operations. The estimates of the manufacturing overhead and of machine-hours were made at the beginning of the year for the purpose of computing the company's predetermined overhead rate for the year. The predetermined overhead rate is closest to:

• A)$36.60
• B)$36.41
• C)$36.24
• D)$36.05

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Definitions:

Cash Flow

The overall sum of funds moving into and out of a company, particularly how it impacts the availability of cash.

Average Total Assets

A measure used to evaluate a company's efficiency at using its assets by calculating the average of its total assets over a specific period.

Operating Income

The profit realized from a business's ongoing operations, calculated before interest and taxes.

Statement of Cash Flows

A financial statement that summarizes the amount of cash and cash equivalents entering and leaving a company.