ABC Company Listed the Following Data for the Current Year

question 86

Multiple Choice

ABC Company listed the following data for the current year: $\begin{array}{lr}\text { Budgeted factory overhead } & \$ 1,044,000 \\\text { Budgeted direct labor hours } & 69,600 \\\text { Budgeted machine hours } & 24,000 \\\text { Actual factory overhead } & 1,037,400 \\\text { Actual labor hours } & 72,600 \\\text { Actual machine hours } & 23,600\end{array}$ Assuming ABC Company applied overhead based on direct labor hours, the company's predetermined overhead rate for the year is:

• A)$43.95 per direct labor hour.
• B)$15.50 per direct labor hour.
• C)$15.00 per direct labor hour.
• D)$14.28 per direct labor hour.
• E)$14.00 per direct labor hour.

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Definitions:

Knowledge Management

The process of capturing, distributing, and effectively using knowledge within an organization.

Knowledge Creation

The process of generating new ideas, solutions, or innovations through the transformation and combination of existing information.

Knowledge Hoarding

The practice of individuals or organizations deliberately keeping or withholding knowledge from others, often to maintain a competitive advantage or control.

Knowledge Application

The use of accumulated information and skills in practical situations to solve problems or achieve goals.