The Malcolm Company Uses a Standard Cost System in Which

question 29

Multiple Choice

The Malcolm Company uses a standard cost system in which manufacturing overhead costs are applied to products on the basis of standard direct labor-hours (DLHs) . The standards call for 3 hours of direct labor per unit produced. The following data pertain to the company's manufacturing overhead for the month of July:
-The Fixed component of the predetermined overhead rate for June is:

• A)$3.11
• B)$3.39
• C)$3.77
• D)$3.00

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Definitions:

Increase

An upward change or rise in number, amount, value, or degree.

Accounts Receivable

Money owed to a business by its clients or customers for goods or services already provided but not yet paid for.

Free Cash Flow

The amount of cash a company generates after accounting for capital expenditures, indicating the financial health and liquidity of a company.

Operations

The day-to-day activities necessary for a business to function, including production, sales, and administration.