Hails Corporation Manufactures Two Products: Product Q21F and Product H44W

question 28

Multiple Choice

Hails Corporation manufactures two products: Product Q21F and Product H44W. The company uses a plantwide overhead rate based on direct labor-hours. It is considering implementing an activity-based costing (ABC) system that allocates its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products Q21F and H44W. Using the plantwide overhead rate, the percentage of the total overhead cost that is allocated to Product Q21F is closest to:

• A) 21.30%
• B) 17.81%
• C) 50.00%
• D) 60.00%

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Definitions:

Interests

Preferred activities influenced by an individual’s values which also can provide information about potential career choices.

Salary

Salary refers to a fixed regular payment, typically expressed on an annual basis, made by an employer to an employee, especially a professional or white-collar worker.

Values

A set of beliefs or ideas developed throughout an individual’s life which are important to him or her and are likely to predict the type of career the individual will enjoy.

Interest Inventories

Tests widely used in counseling and career assessment which evaluate a client’s interest, provide a wealth of knowledge of a client’s likes or dislikes, and gain insight into an individual’s personality.