Q-Dot Manufacturing Company Has Provided the Following Information for the Year

question 76

Multiple Choice

Q-dot Manufacturing Company has provided the following information for the year 2012:
$$\begin{array} { l l } \text { Actual manufacturing overhead costs incurred } & \$ 199,900 \\\text { Manufacturing overhead costs allocated to production } & \$ 189,000 \\\text { Actual direct materials cost } & \$ 560,000 \\\text { Actual direct labor cost } & \$ 333,000 \\\text { Actual direct labor hours } & 9,450 \text { direct labor hours } \\\text { Actual machine hours } & 180,000 \text { machine hours }\end{array}$$
Based on the above information, what was Q-dot's allocation rate? (Hint: for this type of problem, the "trial and error" method may be used.)

• A) $7.60 per machine hour
• B) 132% of direct labor cost
• C) 80% of direct materials cost
• D) $20 per direct labor hour

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Definitions:

Categories

In Aristotle's philosophy, a way of classifying the world that includes ten distinct types such as substance, quantity, quality, and relation.

Mental Representations

Internal cognitive symbols, structures, or maps of the world that individuals use to understand and interact with their environment.

Subordinate-level

A specific, detailed level within a categorization hierarchy, often denoting a particular member of a larger group.

Basic-level

Refers to the most natural and preferred categorical level at which people classify and label objects, which balances specificity and generalization.