The Heartmore Organization Uses a Single Cost Allocation Base

question 92

Multiple Choice

The Heartmore Organization uses a single cost allocation base.The management accountants group all budgeted indirect costs of $4,000,000 into a single overhead cost pool.They also reported a budget of 40,000 direct manufacturing labor-hours during the same period.
Required:
What is the rate per direct manufacturing labor-hour?

• A)$50 per direct manufacturing labor-hour.
• B)$75 per direct manufacturing labor-hour.
• C)$100 per direct manufacturing labor-hour.
• D)$125 per direct manufacturing labor-hour.
• E)$150 per direct manufacturing labor-hour.

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Definitions:

Logical Process

A method of reasoning or a sequence of steps followed to arrive at a conclusion or solve a problem systematically.

Toxic Emotions

Negative feelings that can be harmful to an individual's mental or emotional well-being, often stemming from stress or conflict.

Emotional Balance

A state of stability and harmony in a person's feelings, where emotional responses are appropriate to the situation.

It's Not Personal

A phrase indicating that actions or decisions are based on professional or objective considerations rather than personal feelings or biases.