Which of the Following Statements About Using a Plantwide Overhead

question 272

Multiple Choice

Which of the following statements about using a plantwide overhead rate based on direct labor is correct?

• A) Using a plantwide overhead rate based on direct labor-hours will ensure that direct labor costs are correctly traced to jobs.
• B) Using a plantwide overhead rate based on direct labor costs will ensure that direct labor costs will be correctly traced to jobs.
• C) It is often overly simplistic and incorrect to assume that direct labor-hours is a company's only manufacturing overhead cost driver.
• D) The labor theory of value ensures that using a plantwide overhead rate based on direct labor will do a reasonably good job of assigning overhead costs to jobs.

---

Definitions:

Human Ear

A part of the human body that is responsible for detecting sound and helping in the balance and positioning of the body.

Artificial Light

Light produced by electrical means, as opposed to natural light sourced from the sun.

Urban Areas

Regions characterized by high population density and vast human features in comparison to areas surrounding it.

Ozone Depletion

The reduction in the concentration of ozone in the Earth's stratosphere, leading to an increased risk of sun-related skin damage and other environmental issues.