Longobardi Corporation Bases Its Predetermined Overhead Rate on the Estimated

question 74

Multiple Choice

Longobardi Corporation bases its predetermined overhead rate on the estimated labor-hours for the upcoming year. At the beginning of the most recently completed year, the Corporation estimated the labor-hours for the upcoming year at 46,000 labor-hours. The estimated variable manufacturing overhead was $6.25 per labor-hour and the estimated total fixed manufacturing overhead was $1,026,260. The actual labor-hours for the year turned out to be 41,200 labor-hours. The predetermined overhead rate for the recently completed year was closest to:

• A) $28.56 per labor-hour
• B) $22.31 per labor-hour
• C) $6.25 per labor-hour
• D) $31.16 per labor-hour

Recognize the methodology for determining wage rates for non-key jobs using the point value system.

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Comprehend the significance of compa-ratios in evaluating employee compensation.

Distinguish between different types of individual incentive plans and their applications.