Using the Single Plantwide Factory Overhead Rate with an Allocation

question 8

Multiple Choice

Using the single plantwide factory overhead rate with an allocation base of direct labor hours,how much factory overhead will Blackwelder Factory allocate to desk lamp production if actual direct hours for the period is 118,000?

• A) $118,000
• B) $200,000
• C) $188,800
• D) $125,000

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Definitions:

McClelland's Motivation Theory

A theory that identifies three primary motivational needs: the need for achievement, the need for affiliation, and the need for power, which influence human behavior.

Need For Achievement

An individual's desire for significant accomplishment, mastering of skills, control, or high standards.

Need For Affiliation

A person's desire to build and maintain strong, positive relationships with others.

Need For Power

A personal drive to influence, control or have authority over others, as described in McClelland's theory of needs.