Hancock Manufacturing Allocates Overhead to Production on the Basis of Direct

question 100

Multiple Choice

Hancock Manufacturing allocates overhead to production on the basis of direct labor costs. At the beginning of the year, Hancock estimated total overhead of $396,000; materials of $410,000 and direct labor of $220,000. During the year Hancock incurred $418,000 in materials costs, $413,200 in overhead costs and $224,000 in direct labor costs. Compute the overhead application rate.

• A) 180%.
• B) 55.6%.
• C) 186%.
• D) 184%.
• E) 96.6%.

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Definitions:

Broad

Having a wide range, scope, or extent; in NMR, a broad signal suggests a diversity of chemical environments or interactions.

Singlet

In NMR spectroscopy, a signal that appears as a single peak, indicating an atom's hydrogen atoms are not coupled to other hydrogen atoms.

NMR

Nuclear magnetic resonance, a spectroscopic technique used to observe local magnetic fields around atomic nuclei, providing detailed information about the structure, dynamics, reaction state, and chemical environment of molecules.

IR

Infrared spectroscopy, a technique used in chemistry to identify compounds and investigate molecular structure by analyzing the vibration of bonds under infrared light.