The Manufacturing Overhead Budget at Mahapatra Corporation Is Based on Budgeted

question 44

Multiple Choice

The manufacturing overhead budget at Mahapatra Corporation is based on budgeted direct labor-hours. The direct labor budget indicates that 7,900 direct labor-hours will be required in May. The variable overhead rate is $9.50 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $112,970 per month, which includes depreciation of $18,170. All other fixed manufacturing overhead costs represent current cash flows.
-The company recomputes its predetermined overhead rate every month.The predetermined overhead rate for May should be:

• A)$14.30
• B)$21.50
• C)$9.50
• D)$23.80

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Definitions:

Decision Unanimity

The condition in which all members of a group or decision-making body agree on a particular decision or outcome.

Groupthink

A psychological phenomenon that occurs within a group of people when the desire for harmony or conformity results in irrational or dysfunctional decision-making outcomes.

Self-Censorship

The act of withholding one's own speech or expression due to the fear of social or official repercussions.

Authority Rule

The power or right assigned to an individual or body to make decisions, enforce rules, and command obedience within a specified sphere.