Using the Single Plantwide Factory Overhead Rate with an Allocation

question 60

Multiple Choice

Using the single plantwide factory overhead rate with an allocation base of direct labor hours,how much factory overhead will Challenger Factory allocate to regular widget production if budgeted production for the period is 75,000 units and actual production for the period is 72,000 units?

• A) $168,750
• B) $324,000
• C) $162,000
• D) $337,500

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Definitions:

Predetermined Tools

Tools or equipment selected prior to their application or implementation in a process or project.

Repetitive

Characterized by or involving repetition, especially in actions, events, or processes, leading to a lack of variety.

Motivational Factors

Elements or conditions that drive individuals to put forth effort towards achieving goals and performing tasks.

Job Enrichment

A method of motivating employees by adding variety, autonomy, and increased responsibility to their roles to enhance job satisfaction and performance.