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:

Modern Conveniences

Technologies, devices, or services that simplify tasks and make daily life easier compared to past times.

Fulfillment

The achievement of something desired, promised, or predicted, or a sense of happiness or satisfaction resulting from achieving one's potential or realizing one's desires.

Self-Actualize

The realization or fulfillment of one's talents and potentialities, especially considered as a drive or need present in everyone.

Regulatory Fit

Regulatory Fit is a theory that suggests people's motivation in a task, decision, or persuasion is enhanced when the approach matches their regulatory focus, either promotion or prevention focused.