A Manufacturer of Playground Equipment Uses a Standard Costing System

question 33

Multiple Choice

A manufacturer of playground equipment uses a standard costing system in which standard machine-hours (MHs) is the measure of activity.Data from the company's flexible budget for manufacturing overhead are given below: The following data pertain to operations for the most recent period: The predetermined fixed manufacturing overhead rate is closest to:

• A)$12.24 per MH
• B)$13.55 per MH
• C)$13.87 per MH
• D)$11.96 per MH

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Definitions:

Mechanized Transportation

The use of machinery, such as cars, trains, and airplanes, to move goods and people over distances, significantly increasing efficiency and speed compared to traditional methods.

Buggy Whips

A product or service that has become obsolete due to technological advancements or changes in consumer preferences.

Demand

The interest and capacity of buyers to acquire a product or service for a certain cost.

Human Capital

The abilities, understanding, and expertise held by a person or a group, considered in terms of their economic or value worth to a company or nation.