Arbor, Inc

question 108

Multiple Choice

Arbor, Inc. has estimated overhead to be $300,000 and labor hours to be 30,000. Actual overhead turned out to be $310,000 when 30,500 labor hours were worked. The predetermined overhead rate would be:

• A) 101.67%.
• B) $10.00.
• C) $10.16.
• D) $10.33.

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Definitions:

Divisional Structures

An organizational structure that groups departments based on common products, services, markets, or geographical locations.

Few Products

A situation where a business offers a limited selection of goods or services.

Division Of Labour

The allocation of different parts of a manufacturing process or task to different individuals in order to improve efficiency and productivity.

Performance Results

The measurable outcomes achieved through work activities, reflecting the effectiveness and efficiency of an individual or organization.