Jimbob Co Has the Following Estimated Costs for the Next Year

question 61

Multiple Choice

Jimbob Co. has the following estimated costs for the next year: $$\begin{array} { | l | l | } \hline \text { Direct materials } & \$ 4,000 \\\hline \text { Direct labour } & 20,000 \\\hline \text { Rent on factory building } & 15,000 \\\hline \text { Sales salaries } & 25,000 \\\hline \text { Depreciation on factory equipment } & 8,000 \\\hline \text { Indirect labour } & 10,000 \\\hline \text { Production supervisor's salary } & 12,000 \\\hline\end{array}$$ The company estimates that 20,000 labour hours will be worked and 1,000 machine hours incurred during the year. If overhead is applied on the basis of direct labour costs, the overhead rate will be:

• A)100%.
• B)400%.
• C)225%.
• D)200%.

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Definitions:

Fundamental Attribution Error

The tendency to overemphasize personality-based explanations for behaviors observed in others while underemphasizing situational explanations.

Collectivist Culture

A cultural orientation that emphasizes the needs, goals, and views of the group over individual desires or motivations.

Individualist Culture

A culture that emphasizes personal independence and the value of individual self-reliance and personal achievements.

Unflappable

Describes someone who remains calm and composed, even in highly stressful or unexpected situations.