Sybil,IncUses a Predetermined Overhead Allocation Rate to Allocate Manufacturing Overhead

question 98

Multiple Choice

Sybil,Inc.uses a predetermined overhead allocation rate to allocate manufacturing overhead costs to jobs.The company recently completed Job 300X.This job used 14 machine hours and 4 direct labor hours.The predetermined overhead allocation rate is calculated to be $44 per machine hour.What is the amount of manufacturing overhead allocated to Job 300X using machine hours as the allocation base?

• A)$616
• B)$176
• C)$792
• D)$440

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Definitions:

Distribution Network

The interconnected group of storage facilities and transportation systems that move goods from suppliers to consumers.

Objective Function

A mathematical function used in optimization that defines the goal to be achieved, often maximizing or minimizing some quantity.

Optimal Solution

The best possible outcome or answer found for a given problem, often characterized by the most efficient allocation of resources to achieve desired objectives.

Northwest-Corner Rule

A method used in transportation problems of operations research to find an initial feasible solution by starting from the top-left (northwest) corner of a matrix.