Nadelson Incorporated Makes a Single Product-An Electrical Motor Used in Many

question 129

Multiple Choice

Nadelson Incorporated makes a single product-an electrical motor used in many long-haul trucks. The company has a standard cost system in which it applies overhead to this product based on the standard labor-hours allowed for the actual output of the period. Data concerning the most recent year appear below: The variable component of the predetermined overhead rate is closest to:

• A) $1.26 per labor-hour
• B) $1.20 per labor-hour
• C) $1.64 per labor-hour
• D) $1.57 per labor-hour

---

Definitions:

Output

The final product, result, or amount produced by a process, system, or activity.

People

Refers to individuals or groups involved in a specific context or situation, such as employees within an organization or customers in a business setting.

Knowledge Workers

Employees valued for their ability to interpret and analyze information, often contributing to innovation and strategic planning in a business.

Lower-Level Managers

Managers who supervise routine tasks and the day-to-day operations of a business, often directly managing non-managerial employees.