Kelsh Company Uses a Predetermined Overhead Rate Based on Machine-Hours

question 126

Multiple Choice

Kelsh Company uses a predetermined overhead rate based on machine-hours to apply manufacturing overhead to jobs.The company has provided the following estimated costs for next year: Kelsh estimates that 5,000 direct labor-hours and 10,000 machine-hours will be worked during the year.The predetermined overhead rate per hour will be:

• A)$6.80
• B)$6.40
• C)$3.40
• D)$8.20

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Definitions:

Fly Ash

A fine powder that is a byproduct of burning pulverized coal in electric generation power plants, which can be used as a pozzolan in concrete production.

Hazardous Wastes

Materials considered dangerous to humans or the environment due to their toxic, corrosive, or otherwise harmful properties, requiring special disposal methods to mitigate these risks.

Taxpayers

Individuals or entities that are required to pay taxes to a governing body, contributing to public revenue for governmental spending.

Leachate

Liquid that has percolated through a solid and leached out some of its constituents, often used in the context of water passing through waste material in landfills.