The Soap Company Uses Job Costing and Applies Overhead Using

question 7

Multiple Choice

$\begin{array}{lccc}&\text { Direct }&\text {Direct}&\text { Direct }\\&\text { Materials }&\text {Labour Cost }&\text {Labour Hours }\\\text { Job 200 } & \$ 500 & \$ 800 & 40 \\\text { Job 201 } & 350 & 200 & 10 \\\text { Job 202 } & 1,000 & 600 & 30\end{array}$ The Soap Company uses job costing and applies overhead using a normal costing system using direct labour hours as the allocation base. This period's estimated overhead cost is $400,000, estimated direct labour cost is $500,000 and estimated direct labour hours are 25,000. This period's actual overhead cost was $420,000, actual direct labour cost was $390,000, and actual direct labour hours were 20,000.
What is the overhead allocation rate?

• A) $21/hour
• B) $10/hour
• C) $16/hour
• D) $18/hour

---

Definitions:

Diffusion Tensor Imaging

A magnetic resonance imaging (MRI) technique that measures the directional movement of water molecules in tissue, particularly useful for mapping white matter pathways in the brain.

Nerve Fiber Pathways

The routes taken by elongated nerve cells as they transmit electrical impulses throughout the body.

Directional Movement

The functional motion of an organism or parts of an organism toward or away from an external stimulus.

EEG

A test that detects electrical activity in the brain using small, flat metal discs attached to the scalp.