ABC Corporation Allocates Overhead Based on Direct Labor Cost

question 126

Multiple Choice

ABC Corporation allocates overhead based on direct labor cost.Assume ABC expects to incur a total of $1,025,000 in overhead costs and $820,000 in direct labor costs.Actual overhead costs incurred totaled $1,050,000 and actual direct labor costs totaled $800,100.ABC's predetermined overhead rate is closest to

• A)125% of direct labor cost.
• B)128% of direct labor cost.
• C)98% of direct labor costs.
• D)100% of direct labor costs.

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Definitions:

Age Discrimination

Unfair treatment of individuals based on their age, particularly in employment practices.

Affirmative Action

A policy or a set of measures aimed at increasing opportunities for historically disadvantaged groups in various areas, such as employment and education.

Comparable Worth

The principle that jobs of equal value to an organization should receive equal pay, regardless of the gender or ethnicity of the person performing the job.

Employment Equity Act

Legislation aimed at promoting fair treatment and eliminating discrimination in the workplace, ensuring equality of opportunity for all employees.