Petraeus Fabrication Company Has Provided the Following Information for the Year

question 154

Multiple Choice

Petraeus Fabrication Company has provided the following information for the year 2012:
$$\begin{array} { l l } \text { Actual manufacturing overhead costs incurred } & \$ 268,000 \\\text { Manufacturing overhead costs allocated to production } & \$ 259,200 \\\text { Actual direct materials cost } & \$ 800,000 \\\text { Actual direct labor cost } & \$ 144,000 \\\text { Actual direct labor hours } & 3,200 \text { direct labor hours } \\\text { Actual machine hours } & 10,900 \text { machine hours }\end{array}$$
Based on the above information, what was Petraeus's allocation rate? (Hint: for this type of problem, the "trial and error" method may be used.)

• A) $95 per direct labor hour
• B) 180% of direct labor cost
• C) $8.50 per machine hour
• D) 12% of direct materials cost

Recognize the considerations for reporting on geographical segments.

Acknowledge the significance of reconciling segment information with entity financials.

Understand the criteria and implications of relying on a single major customer.

Recognize the ethical considerations and potential for manipulation in segment reporting.

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Definitions:

Conscientiousness

Traits that include being orderly, trustworthy, and having a significant dedication to obligations.

Emotional Stability

A personality trait signifying the extent to which a person can remain calm and composed under stress or pressure.

Organizational Financial Performance

The measure of a company's profitability, revenue growth, and financial health.

Conscientiousness

A personality trait marked by diligence, carefulness, and a desire to do a task well.