The Following Overhead Cost Information Is Available for Henderson Inc

question 69

Multiple Choice

The following overhead cost information is available for Henderson Inc.for 2006:
$\begin{array}{llc}\text { Activity } & \text { Allocation Base } & \text { Overhead Cost } \\\hline \text { Purchasing } & \text { Number of purchase orders } & \$ 40000 \\\text { Receiving } & \text { Number of shipments received } & 25000 \\\text { Machine setups } & \text { Number of setups } & 30000 \\\text { Ouality control } & \text { Number of inspections } & 20000\end{array}$
During the year,2000 purchase orders were issued;800 shipments were received;3000 machine setups were performed;and 2500 inspections were conducted.
If Job #101 required 3 purchase orders,4 shipments,4 machine setups,and 2 inspections to complete,how much overhead should be assigned to Job #101?

• A) $241.00
• B) $ 69.25
• C) $180.18
• D) $ 13.86

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Definitions:

Human Resource Accounting

The process of identifying, measuring, and communicating information about human resources to aid management within an organization.

Dollar Figure

A numerical value or amount expressed in terms of dollars, often used in financial reporting, budgeting, and transactions.

HR Objectives

The goals or plans set by the Human Resources department to enhance workforce performance and meet organizational needs.

HRM Programs

Human Resources Management initiatives aimed at optimizing organizational effectiveness through managing personnel.