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Use Information Below to Answer the Following Questions -Refer to the Table Above

question 28

Multiple Choice

Use information below to answer the following questions.
Oswald Ltd manufactures a wide range of leather suitcases. The following costs are expected to be incurred by the company during June: $\begin{array}{lr}\text { Ind irect labour cost } & \$ 26,000 \\\text { Direct labour time } & 10,000 \text { hours }\\\text { Depreciation on equipment } & \$ 20,000 \\\text { Rent and Rates } & \$ 13,000 \\\text { Direct labour costs } & \$ 98,000 \\\text { Heating, lighting and power } & \$ 4,000 \\\text { Machine time } & 8,000\text { hours } \\\text { Indirect materials } & \$ 5,000 \\\text { Consumables } & \$ 2,000 \\\text { Direct materials used } & \$ 50,000 \\\text { Production estimate } & 1,000\text { suitcases }\\\end{array}$
-Refer to the table above. The management accountant at Oswald Ltd, wants to revise his estimates and use machine hours as the allocation base to determine the overhead recovery rate. The revised overhead recovery rate (rounded) per machine hour will be:

Definitions:

Pressuring Employer

Tactics or strategies used by employees or unions to encourage employers to meet their demands or negotiate.

Contractual Terms

Specific provisions or stipulations contained within a contract that outline the obligations, rights, and responsibilities of each party.

Arbitration

A form of alternative dispute resolution where a neutral third party, the arbitrator, makes a binding decision to resolve a dispute between parties.

Work-to-rule

A form of industrial action in which employees perform their tasks exactly as outlined in their job descriptions, refusing to do any more than the minimum required as a means of protest.