Use the Table for the Question(s)below

question 18

Multiple Choice

Use the table for the question(s) below.
Consider a project with the following cash flows:
-Assume the appropriate discount rate for this project is 15%.The payback period for this project is closest to:

• A)3.0
• B)2.5
• C)2.0
• D)4.0

---

Definitions:

Direct Labor Hours

The total hours worked directly on the production of goods or services, used in calculating the labor cost of products.

Allocation Base

A measure or statistics used to determine how to distribute indirect costs to various cost objects in a way that is equitable and rational.

Overhead Costs

Indirect expenses related to the general operation of a business, such as administrative salaries, rent, and utilities, that cannot be directly attributed to a specific product or service.

Plantwide Overhead Rate

A single overhead rate calculated for an entire manufacturing plant, used to allocate overhead costs to multiple production departments or products.