Sutherland Company Listed the Following Data for 2019 Assuming Sutherland Applied Overhead Based on Direct Labor Hours, the Budgeted

question 96

Multiple Choice

Sutherland Company listed the following data for 2019: $\begin{array}{lr}\text { Budgeted factory overhead } & \$ 2,100,000 \\\text { Budgeted direct labor hours } & 89,000 \\\text { Budgeted machine hours } & 51,000 \\\text { Actual factory overhead } & 2,201,000 \\\text { Actual direct labor hours } & 83,700 \\\text { Actual machine hours } & 48,900\end{array}$ Assuming Sutherland applied overhead based on direct labor hours, the company's predetermined overhead rate for 2019 is (round to two significant digits) :

• A)$23.20 per direct labor hour.
• B)$23.60 per direct labor hour.
• C)$22.24 per direct labor hour.
• D)$22.50 per direct labor hour.
• E)$22.85 per direct labor hour.

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Definitions:

Self-Determination Theory

A theory of motivation that posits that people are most motivated when they feel that they have autonomy, competence, and relatedness.

McClelland's Need

Refers to a theory identifying three primary needs in work situations: the need for achievement, the need for power, and the need for affiliation.

Alderfer's Relatedness Needs

A component of Alderfer's ERG theory focusing on the interpersonal relationships and social needs of individuals within an organization.

Motivation Theory

A set of theories that aim to explain what drives individuals to initiate, direct, and sustain behaviors and actions to achieve specific goals.