Harms Shoe Company Applies Manufacturing Overhead Based on the Number

question 54

Multiple Choice

Harms Shoe Company applies manufacturing overhead based on the number of units as the cost driver.Information concerning costs for July follows:
$\begin{array}{ll}\text { Direct labor costs } & 800 \text { hours @ \$14 } \\\text { Manufacturing overhead } & \$ 8,000 \\\text { Direct materials } & \$ 45,000\end{array}$
How much is the unit product cost if 1,000 units are produced?

• A)$8.00
• B)$64.20
• C)$53.00
• D)$45.00

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Definitions:

Pleasure Principle

A concept in psychoanalytic theory that describes the instinctual seeking of pleasure and avoiding of pain to satisfy biological and psychological needs.

Reality Principle

A psychoanalytic concept referring to the ego's management of the demands of the environment in a realistic manner, balancing them against the id's instincts.

Transference

The way the client perceives the therapist.

Therapist

A healthcare professional trained to treat emotional, mental health, or behavioral problems through various therapeutic techniques.