If the Company Allocates All of Its Overhead Based on Direct

question 8

Multiple Choice

If the company allocates all of its overhead based on direct labor-hours using its traditional costing method, the overhead assigned to each unit of Product G1 would be closest to:

• A)$412.02 per unit
• B)$780.12 per unit
• C)$720.63 per unit
• D)$691.83 per unit

---

Definitions:

Watts

The SI unit of power, indicative of the rate at which energy is transferred or converted.

Cell Phone Plan

A contract offered by telecom companies that includes a combination of voice, message, and data services for mobile phones.

Minutes

A unit of time equal to one-sixtieth of an hour, or 60 seconds.

Unlimited Calling

A telecommunications plan that allows for unlimited voice calls within a predetermined range, typically domestically, without incurring additional fees.