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:

• A)$4.88 per MH.
• B)$9.00 per MH.
• C)$7.38 per MH.
• D)$8.75 per MH.

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Definitions:

Gramsci

An Italian Marxist philosopher and communist politician, Antonio Gramsci contributed significantly to political theory, especially in the areas of cultural hegemony and the state's role in preserving class structures.

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This concept involves the mechanisms, institutions, and structures through which a state enforces its regulations and achieves governance, highlighting the systematic arrangement of authority.

Armed Force

An organization or body, typically governmental, authorized to use weapons and violence for the purposes of defending the country and its citizens.

African-Americans

An ethnic group of Americans with total or partial ancestry from any of the Black racial groups of Africa.