Raven Applies Overhead Based on Direct Labor Hours

question 92

Multiple Choice

Raven applies overhead based on direct labor hours.The variable overhead standard is 2 hours at $11 per hour.During July,Raven spent $116,700 for variable overhead.8,890 labor hours were used to produce 4,700 units.How much is variable overhead on the flexible budget?

• A)$56,400
• B)$97,790
• C)$103,400
• D)$116,700

Recognize the relationship between job design, job analysis, and job enrichment.

Identify the principles of employee empowerment and how it links to productivity.

Grasp the concept and benefits of work teams in enhancing work performance.

Understand the role of skill variety, autonomy, and feedback in job satisfaction.

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Definitions:

Cost of Capital

The rate of return that a company must pay on its investment and financing activities to maintain its current market value.

Cash Inflows

Money received by a business or organization through its activities, such as sales revenue, investment income, or financing.

Profitability Index

A ratio that calculates the relative profitability of an investment by dividing the present value of future expected cash flows by the initial investment cost.

Initial Investment

The amount of money used to start a project, investment, or business.