The Occupational Safety and Health Administration (OSHA) Has Determined That

question 17

Multiple Choice

The Occupational Safety and Health Administration (OSHA) has determined that the probability of a worker dying from exposure to a hazardous chemical used in the production of diet soft drinks is 0.0005.The cost of imposing a regulation that would ban this chemical is $18 million.If each person saved has a value equal to $10 million, how many people must the policy affect in order for benefits to exceed costs?

• A)3600
• B)1800
• C)600
• D)100

---

Definitions:

Denominator Activity

The level of activity used to compute the predetermined overhead rate.

Applied Factory Overhead

The portion of factory overhead costs assigned to each unit of production, based on an estimated or predetermined rate.

Electrical Motor

A device that converts electrical energy into mechanical energy, commonly used in appliances, industrial equipment, and vehicles.

Manufacturing Overhead

includes all indirect costs associated with the production process, such as utilities, maintenance, and salaries of non-direct labor.