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:

Middle Childhood

A developmental stage ranging approximately from ages 6 to 12, during which children experience rapid growth in intellectual, social, and emotional domains.

Cooperative Play

A developmental stage of play where children play together, sharing ideas and goals in their activities.

Associative Play

Play in which two or more children interact by sharing or borrowing toys or materials, although they do not do the same thing.

Parallel Play

A development stage in early childhood where children play adjacent to each other but do not interact.