If the Company Allocates All of Its Overhead Based on Direct

question 154

Multiple Choice

If the company allocates all of its overhead based on direct labor-hours using its traditional costing method, the predetermined overhead rate would be closest to:

• A)$34.33 per DLH
• B)$15.39 per DLH
• C)$23.03 per DLH
• D)$78.28 per DLH

---

Definitions:

Consumer Behavior

Actions of ultimate consumers directly involved in obtaining, consuming, and disposing of products and the decision processes that precede and follow these actions.

Marketing

Activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.

Offering

A product, service, or combination thereof that a company presents to its customers.

Place Utility

Availability of a product in a location convenient for customers.