Simplex Company Has the Following Estimated Costs for Next Year

question 4

Multiple Choice

Simplex Company has the following estimated costs for next year: $\begin{array}{llcc} \text { Direct materials............................... } &\$15,000\\ \text {Direct labor..................................... } &\$55,000\\ \text { Sales commissions.......................... } &\$75,000\\ \text { Salary of production supervisor....... } &\$35,000\\ \text { Indirect materials........................... } &\$5,000\\ \text {Advertising expense........................ } &\$11,000\\ \text { Rent on factory equipment............} &\$16,000\\\end{array}$
Simplex estimates that 10,000 direct labor and 16,000 machine-hours will be worked during the year.If overhead is applied on the basis of machine-hours,the overhead rate per hour will be:

• A)$8.56
• B)$7.63
• C)$6.94
• D)$3.50

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Definitions:

Electoral Campaigns

The organized effort carried out by political candidates and parties to win support and votes.

Alexis de Tocqueville

A French political thinker and historian best known for his book "Democracy in America," which analyzes the strengths and weaknesses of American democracy.

Interest Groups

Organizations that attempt to influence public policy and government decisions to benefit their members or causes they support.

Tyranny of the Majority

A situation in a democratic setting where decisions made by a majority place its interests above those of an individual or minority group, potentially leading to oppression.