Spice Simmers Provided the Following Information from Its Accounting Records

question 110

Multiple Choice

Spice Simmers provided the following information from its accounting records for 2020: $\begin{array}{ll} \text { Expected production } & \text { 30,000 labour hours }\\ \text {Actual production } & \text { 28,000 labour hours}\\ \text {Budgeted overhead } &\$1,500,000\\ \text { Actual overhead } &\$1,450,000\\\end{array}$

How much is the overhead application rate if Spice Simmers bases the rate on direct labour hours?

• A)$51.79 per direct labour hour
• B)$48.33 per direct labour hour
• C)$50 per direct labour hour
• D)$46.67 per direct labour hour

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Definitions:

Intimacy or Isolation

A stage in Erik Erikson's psychosocial development theory focusing on young adults' ability to form close relationships versus experiencing loneliness and isolation.

Young Adults

Young adults are individuals in the age group that follows adolescence, typically considered to be between the ages of 18 and 25.

Erik Erikson

A developmental psychologist known for his theory on the psychosocial development of human beings.

Storm and Stress

A term referring to the period of adolescence in which teenagers are in conflict with parents and authority figures, and experience mood swings and strong emotions.