Consider Labour Hired for $18 Per Hour

question 59

Multiple Choice

Consider labour hired for $18 per hour.If the last hour of labour hired produces 8 units of output which sells for $10 per unit,labour should be hired in this situation since the wage is MRP.

• A)less; less than
• B)no; equal to
• C)more; less than
• D)more; greater than
• E)less; greater than

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Definitions:

Fixed Overhead Budget Variance

The variance between the budgeted and the actual incurred fixed overhead expenses.

Manufacturing Overhead Applied

The portion of estimated manufacturing overhead cost that is assigned to each unit of production based on a predetermined rate.

Labor-Hour

A labor-hour represents an hour of work performed by an employee, typically used as a basis for allocating labor costs or measuring productivity.

Manufacturing Overhead

All indirect costs associated with the manufacturing process, including but not limited to utilities, maintenance, and factory equipment depreciation.