Simplex Company Has the Following Estimated Costs for Next Year

question 10

Multiple Choice

Simplex Company has the following estimated costs for next year: $$\begin{array} { | l | l | } \hline \text { Direct materials } & \$ 15,000 \\\hline \text { Direct labour } & 55,000 \\\hline \text { Sales commissions } & 75,000 \\\hline \text { Salary of production supervisor } & 35,000 \\\hline \text { Indirect materials } & 5,000 \\\hline \text { Advertising expense } & 11,000 \\\hline \text { Rent on factory equipment } & 16,000 \\\hline\end{array}$$ Simplex estimates that 10,000 direct labour and 16,000 machine hours will be worked during the year. If overhead is applied on the basis of machine hours, the overhead rate per hour will be:

• A)$8.56.
• B)$3.50.
• C)$7.63.
• D)$6.94.

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Definitions:

Performance

The level of achievement or efficiency at which tasks and responsibilities are carried out by an individual or organization.

Psychosocial Function

Refers to an individual's psychological development in, and interaction with, a social environment.

Career Function

The aspects of a job or role that aid in an individual's career advancement, including opportunities for training, networking, and professional growth.

Mentoring Relationship

A professional relationship in which an experienced person (the mentor) provides guidance, advice, and support to a less experienced person (the mentee).