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Jimmy, Maria, and Abdul were carpooling to work. As they were driving through heavy traffic, they were almost hit by a car that was driving on the shoulder. Jimmy immediately assumed it was a rebellious, reckless teenager who clearly was choosing not to follow the rules of the road. Maria assumed it was an impatient, hostile guy in his thirties not wanting to wait with everyone else on the road. Abdul immediately said, "Hey you two, what if the person driving was trying to get a pregnant, laboring woman to the hospital in time for the delivery?" Who did NOT fall prey to the fundamental attribution error?
Overhead Rate
A measure used to allocate overhead costs to products or services, often calculated by dividing total overheads by a base measure such as labor hours or machine hours.
Estimated Labor-Hours
The projected number of labor hours required to complete a batch of goods or provide a service.
Predetermined Overhead Rate
A rate used to allocate estimated overhead costs to products or job orders, based on a planned level of activity or driver.
Unused Capacity
Resources available for use that are not being employed in production, often representing inefficiency.
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