Use the Following Information for the Next 2 Questions

question 92

Multiple Choice

Use the following information for the next 2 questions. O'Hare Sisters Manufacturing uses job costing and applies overhead using a normal costing system using direct labor hours as the allocation base. This period's estimated overhead cost is $400,000, estimated direct labor cost is $500,000 and estimated direct labor hours are 25,000. This period actual overhead cost was $420,000, actual direct labor cost was $390,000, and actual direct labor hours were 20,000.
-What is the overhead allocation rate?

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

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Definitions:

Self-report Inventories

Psychological assessment tools where individuals provide subjective information about their own thoughts, feelings, or behaviors through questionnaires.

Future Illness

The anticipation or prediction of health disorders or diseases that an individual may experience later in life.

Neither Crowded Nor Dense

Describes areas with moderate or low levels of population or object clustering.

Living Conditions

The circumstances affecting the daily life and well-being of people, including their housing, environment, and access to resources.