Steele Corporation uses a predetermined overhead rate based on machine-hours to apply manufacturing overhead to jobs. Steele Corporation has provided the following estimated costs for next year: Direct materials$20,000Direct labor$60,000Sales commissions$80,000Salary of production supervisor$40,000Indirect materials$8,000Advertising expense$16,000Rent on factory equipment$20,000 Steele estimates that 10,000 direct labor-hours and 16,000 machine-hours will be worked during the year. The predetermined overhead rate per hour will be:
A. $4.25
B. $10.25
C. $8.00
D. $9.00
Answer: A
You might also like to view...
Fred and Wilma are having problems because Wilma's mother wants to spend every waking moment with the couple. Which external dialectical tension is this?
A. autonomy vs. connection B. connectedness vs. separateness C. conventionality vs. uniqueness D. inclusion vs. seclusion
Identify which heading position indicates the highest heading level
a. centered b. indented c. run-in d. flush left
Jeff supervises Alex and Miranda. Alex and Miranda ask Jeff to help resolve a dispute between them. Jeff declines but offers to ask Gertrude, another manager, to assist instead
Jeff feels it would be best to have someone else assist because he has a bias against Alex and wants to be fair to him. Of the traits of openness, persistence, and integrity, Jeff's behavior best exemplifies the trait of integrity. Indicate whether the statement is true or false.
High Tech Corp. cut its research and development budget in 2010 by $4,000,000 in order to
improve its cash flow for the year. Which of the following statements is MOST correct? A) The stock price will likely increase because the value of stock is based on reported cash flow. B) The change will have no impact on stock price because the company's profits will not change in 2010. C) The stock price will increase only if reported profits in 2010 are higher than profits reported in 2009. D) The stock price may decrease because investors may predict that future cash flows will decrease due to the lack of innovation and new products.