Compton Company Uses a Predetermined Overhead Rate in Applying Overhead

question 100

Multiple Choice

Compton Company uses a predetermined overhead rate in applying overhead to production orders on a labour cost basis in Department A and on a machine hours basis in Department B. At the beginning of the most recently completed year, the company made the following estimates: $$\begin{array} { | l | l | l | } \hline & \text { Dept. A } & \text { Dept. B } \\\hline \text { Direct labour cost } & \$ 56,000 & \$ 33,000 \\\hline \text { Factory overhead } & \$ 67,200 & \$ 45,000 \\\hline \text { Direct labour hours } & 8,000 & 9,000 \\\hline \text { Machine hours } & 4,000 & 15,000 \\\hline\end{array}$$ What predetermined overhead rate would be used in Department A and Department B, respectively?

• A)83% and $3.
• B)120% and $3.
• C)81% and $3.
• D)83% and $5.

Recognize different job evaluation methods and their application in setting compensations.

Identify the types of benefits such as perquisites, life-cycle benefits, and employee assistance plans, and their significance in employee compensation.

Grasp the importance of pay transparency and pay secrecy and their effects on workplace dynamics.

Understand the legal rights associated with pensions and the function of workers' compensation.

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Definitions:

Neoclassicism

An artistic and architectural movement that emerged in the mid-18th century, inspired by the classical art and culture of ancient Greece and Rome.

Rococo

An 18th-century artistic movement and style, originating in France, characterized by elaborate ornamentation, intricate patterns, and themes of love, nature, and light-heartedness.

Paulina Borghese

A prominent Italian noblewoman, the sister of Napoleon Bonaparte, known for her beauty and the famous sculpture by Antonio Canova depicting her as Venus Victorious.

Neoclassical

An art and architecture style inspired by the classical art and culture of ancient Greece and Rome, emphasizing harmony, clarity, and restraint.