Use the Following Estimates to Calculate the Overhead Allocation Rate

question 87

Multiple Choice

Use the following estimates to calculate the overhead allocation rate for the production department. Use direct labour hour as the allocation base: $$\begin{array} { | l | l | } \hline & \text { Production Department } \\\hline \text { Overhead } & \$ 500000 \\\hline \text { Direct Labour Cost } & \$ 250000 \\\hline \text { Direct Labour Hours } & 12500 \\\hline\end{array}$$

• A) $2 per direct labour dollar
• B) $0.50 per direct labour dollar
• C) $40 per direct labour hour
• D) $0.025 per direct labour hour

---

Definitions:

Massed Practice

A learning strategy that involves intensive, continuous sessions of practice or study without rest intervals.

Distributed Practice

A learning strategy that involves spreading out study sessions over time, rather than cramming them into a short period.

Spacing Effect

A psychological phenomenon where learning is more effective when study sessions are spaced out over time rather than conducted in a single session.

Human Memory

The capacity of the human brain to store, retain, and retrieve information from past experiences or learning.