A Company Allocates Its Variable Factory Overhead Based on Direct

question 114

Multiple Choice

A company allocates its variable factory overhead based on direct labor hours. During the past three months, the actual direct labor hours and the total factory overhead allocated were as follows: Based upon this information, monthly fixed factory overhead was:

• A)$30,000.
• B)$50,000.
• C)$46,667.
• D)$33,333.

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Definitions:

Pay-for-Performance

A compensation strategy where employees' pay is directly tied to their performance, productivity, or achievement of specific targets.

Job Feedback

Information provided by employers or supervisors regarding an employee's work performance, intended to reinforce strengths or identify and correct weaknesses.

Task Identity

The degree to which a job requires completion of a whole and identifiable piece of work.

Skill Variety

The degree to which a job requires a variety of different activities and skills to carry out the responsibilities involved.