Davey Corporation Is Preparing Its Manufacturing Overhead Budget for the Fourth

question 173

Multiple Choice

Davey Corporation is preparing its Manufacturing Overhead Budget for the fourth quarter of the year. The budgeted variable manufacturing overhead rate is $3.00 per direct labor-hour; the budgeted fixed manufacturing overhead is $66,000 per month, of which $10,000 is factory depreciation.
-If the budgeted direct labor time for December is 4,000 hours, then the predetermined manufacturing overhead per direct labor-hour for December would be:

• A)$3.00
• B)$19.50
• C)$5.50
• D)$17.00

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Definitions:

Express Warranty

An oral or written statement, promise, or other representation about the quality of a product.

Smart Phone

A mobile phone offering advanced features beyond making calls and sending text messages, including internet access and various apps.

Breaches Contract

Occurs when one party fails to fulfill its obligations under the contract, violating the agreement.

Resale Value

The estimated amount for which an item or asset can be sold again in the future, often considered in the context of automobiles, electronics, and real estate.