(Appendix 10A) Fredin Incorporated Makes a Single Product--An Electrical Motor

question 141

Multiple Choice

(Appendix 10A) Fredin Incorporated makes a single product--an electrical motor used in many long-haul trucks. The company has a standard cost system in which it applies overhead to this product based on the standard labor-hours allowed for the actual output of the period. Data concerning the most recent year appear below:

-The predetermined overhead rate is closest to:

• A) $22.76 per labor-hour
• B) $11.38 per labor-hour
• C) $17.74 per labor-hour
• D) $8.87 per labor-hour

---

Definitions:

Flexibility

The ability to adapt to changes, challenges, and varying conditions effectively and efficiently.

Management Responsibilities

The obligations and duties of managers to perform tasks and make decisions that contribute to the organization's success.

Operating Distance

Refers to the spatial separation between management and operational activities within an organization or between parts of a geographically dispersed organization.

Project Team

A group of individuals assembled to work on a particular task or project, with skills and roles complementary to the project's requirements.