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

Recognize the importance of individual and organizational learning for achieving competitive advantage.

Identify the principles and impact of corporate social responsibility and affirmative action on organizational culture and practices.

Describe the characteristics of a multicultural organization and the benefits it brings.

Differentiate between knowledge workers and other types of employees, and understand their role in organizational success.

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Definitions:

Access

The ability or right to approach, enter, or use something.

Limited Liability

A legal structure where a company's owners are protected from personal responsibility for its debts or liabilities.

Limited Partners

Investors in a limited partnership who are not involved in daily business operations and whose liability is limited to the amount of their investment.

Participates

To take part in or become involved in an activity or event.