Case Company Allocates $5 A)25,000 MH
B)137,500 MH
C)82,500 MH
D)88,000 MH
E)33,000 MH

question 137

Multiple Choice

Case Company allocates $5.00 overhead to each unit produced.The company uses a plantwide overhead rate with machine hours as the allocation base.Given the amounts below, how many machine hours does the company expect in department 2? $$\begin{array} { l c c } \text { Estimated: } & \text { Department 1 } & \text { Department } 2 \\\text { Marufacturing overhead costs } & \$ 250,000 & \$ 150,000 \\\text { Direct labor hours } & { 8 , 0 0 0 D L H } & 12,000 \mathrm { DLH } \\\text { Machine hours } & 55,000 \mathrm { MH } & ? \mathrm { MH }\end{array}$$

• A)25,000 MH
• B)137,500 MH
• C)82,500 MH
• D)88,000 MH
• E)33,000 MH

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Definitions:

Relevant Expertise

Pertains to having knowledge and skills that are directly applicable and valuable to a particular job, task, or situation.

Ownership Stake

A financial or economic interest in a business or enterprise, representing a share of its assets and potential profits.

Full-fledged Empowerment

The comprehensive granting of autonomy and authority to employees or team members to make decisions and take actions that affect their work.

Manager Decides

A process where leaders or supervisors make determinations or resolutions on behalf of a team or organization, guiding actions and strategies.