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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:

Off-site Employees

Workers who perform their job functions outside of the traditional office setting, such as remote or telecommute positions.

Fixed Position Layout

An arrangement where the product being worked on remains stationary, and workers, materials, and equipment move around it.

Takt Times

The pace at which products must be completed to meet customer demand, calculated as available production time divided by the quantity of product needed.

High-draw Items

Products or goods that consistently generate high demand from consumers or businesses.