Smith Fabricating Uses Job Costing and Applies Overhead Using a }&\text

question 79

Multiple Choice

$\begin{array}{lccc}&\text { Direct }&\text {Direct}&\text { Direct }\\&\text { Materials }&\text {Labour Cost }&\text {Labour Hours }\\\text { Job 200 } & \$ 500 & \$ 800 & 40 \\\text { Job 201 } & 350 & 200 & 10 \\\text { Job 202 } & 1,000 & 600 & 30\end{array}$ Smith Fabricating uses job costing and applies overhead using a normal costing system and uses direct labour cost as the allocation base. This period's estimated overhead cost is $100,000 and estimated direct labour cost of $50,000 and 2,500 direct labour hours.
What is the overhead allocation rate?

• A) 200%
• B) 50%
• C) 30%
• D) 60%

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Definitions:

Strategic Objectives

Long-term goals set by an organization that align with its vision and mission, aimed at achieving competitive advantages.

Project Objectives

Specific goals that are established to guide the completion of a project, defining what needs to be achieved for success.

Values Statements

Declarations that outline an organization's core beliefs and ethical principles, guiding its decisions and behaviors.

Top Management

Refers to the highest level of executives and decision-makers in an organization, responsible for setting strategic goals and policies.