K Company Estimates That Overhead Costs for the Next Year

question 183

Multiple Choice

K Company estimates that overhead costs for the next year will be $2,900,000 for indirect labor and $800,000 for factory utilities.The company uses direct labor hours as its overhead allocation base.If 80,000 direct labor hours are planned for this next year,how much overhead would be assigned to a product requiring 4 direct labor hours?

• A)$46.25
• B)$36.25
• C)$185.00
• D)$145.00
• E)None of the choices

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Definitions:

Compressions

The act of pressing together or the state of being pressed together.

Artificial Respiration

A method of assisting or stimulating respiration in individuals who are incapable of breathing on their own, using mechanical or manual means.

Airway

The part of the respiratory system through which air flows, starting from the nose and mouth down to the bronchi of the lungs.

Breathing

The physical process involving the inhalation and exhalation of air, essential for life.