During 2016 Arb Company Incurred the Following Direct Labor Costs

question 156

Essay

During 2016 Arb Company incurred the following direct labor costs: January $20000 and February $30000. Arb uses a predetermined overhead rate of 120% of direct labor cost. Estimated overhead for the 2 months respectively totaled $19500 and $35700. Actual overhead for the 2 months respectively totaled $25000 and $33500.
Instructions
Determine if overhead is over- or underapplied for each of the two months and the respective amounts.

Identify the assumptions and limitations associated with cost-effectiveness evaluations.

Grasp how the effectiveness of training programs is influenced by the performance level of untrained employees.

Understand the relationship between benefit-cost ratio and return on investment in evaluating training programs.

Comprehend the objectives and outcomes of specific training programs, such as those aimed at reducing equipment downtime and improving product quality.

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Definitions:

Response Deprivation Theory

The idea that when a contingency restricts access to an activity, it causes that activity to become a reinforcement.

Premack's Principle

A principle stating that more probable behaviors can serve as reinforcers for less probable behaviors.

High-Probability Activities

Activities that an individual is highly likely to engage in, often used in behavior modification by allowing access to them as a reward.

Reinforcing

Strengthening a behavior by providing a consequence that will increase the likelihood of the behavior's recurrence.