Wall Nuts, Inc

question 32

Multiple Choice

Wall Nuts, Inc. produces paneling that requires two processes, A and B, to complete. Oak is the best-selling of all the many types of paneling produced. Information related to the 40,000 units of oak paneling produced annually is shown in the following table:

Wall Nuts' total expected overhead costs and related overhead data are shown below.

-Use the data for Wall Nuts,Inc.to compute departmental overhead rates based on machine hours in Department A and machine hours in Department B.

• A)$4.50 per MH in Dept.A; $4.50 per MH in Dept.B.
• B)$7.50 per MH in Dept.A; $7.50 per MH in Dept.B.
• C)$4.50 per MH in Dept.A; $7.50 per MH in Dept.B.
• D)$2.70 per MH in Dept.A; $6.00 per MH in Dept.B.
• E)$0.60 per MH in Dept.A; $0.80 per MH in Dept.B.

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Definitions:

Aggregate Demand

The total amount of goods and services demanded in an economy at a given overall price level and in a given time period.

Price Level

A measure of the average prices of goods and services in an economy at a given time, indicating the cost of living or inflation rate.

Dividend Yield

An economic indicator demonstrating the ratio of a company's annual dividends to its stock price.

Constant Rate

A fixed rate that does not change over the specified period of time.