Figure 4-6 The Fast & Furious Company Produces Two Products: Toy Planes

question 158

Multiple Choice

Figure 4-6
The Fast & Furious Company produces two products: toy planes and toy race cars. They use departmental overhead rates for the two production departments: molding and finishing. Molding uses machine hours to assign overhead and Finishing uses direct labor hours. 50,000 planes and 250,000 race cars are produced. Please find the following data:

-Refer to Figure 4-6. What is the overhead per unit for race cars? (round to 3 decimal places)

• A) $0.50
• B) $0.505
• C) $0.32
• D) $1.40

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Definitions:

Secured Party

An individual or entity that holds an interest in a secured transaction, typically a lender with a security interest in the collateral provided by a borrower.

Debtor

An individual or organization that owes money to another party, known as the creditor.

Security Agreement

A legal document that provides a lender a security interest in a specified asset or property that is pledged as collateral for a loan, in case of borrower default.

Authenticated Record

A document verified as genuine, usually through a process that confirms its origin and integrity.