The Following Information Pertains to Longboat Company: Longboat Company

question 94

Multiple Choice

The following information pertains to Longboat Company: Longboat Company does not divide costs into fixed and variable components. Personnel costs are allocated based on the number of employees, and maintenance costs are allocated based on machine hours.
Predetermined overhead rates for fabrication and assembly are based on direct labor hours. (Round amounts to dollars.)
If the direct method is used to allocate support department costs, the predetermined overhead rate for the Fabrication Department (rounded to two decimal places) would be

• A) $28.80.
• B) $24.78.
• C) $7.28.
• D) $5.40.

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Definitions:

Experimental Starvation

The deliberate restriction of nutrients for research purposes, typically to study the effects of malnutrition on biological organisms.

Metabolic Rate

The rate at which the body expends energy or burns calories, crucial for maintaining basic physiological functions.

Weight Maintenance

The ability to keep one’s weight at a steady level, especially after losing weight.

Leptin

A hormone produced by fat cells that helps to regulate energy balance by inhibiting hunger.