Carly Borrowed $2,500 from Clare on July 18 at an Interest

question 84

Multiple Choice

Carly borrowed $2,500 from Clare on July 18 at an interest rate of 8%. On March 7 of the following year, Carly repaid the loan with interest. How much interest should she have paid?

• A) $72.88
• B) $21.63
• C) $127.12
• D) $112.50
• E) $90.87

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Definitions:

Direct Labor Hours

The total hours worked by employees directly involved in the manufacturing process, often used as a basis for allocating factory overhead.

Desk Lamp Production

The process involving the assembly, testing, and packaging of desk lamps for consumer use.

Single Plantwide Factory Overhead Rate

A method of allocating total factory overhead costs to units produced, using a single rate for the entire manufacturing plant.

Labor-Intensive Department

A department within a company that relies more on human labor than on machinery or automation to produce goods or provide services.