Answer the Following Questions Using the Information Below

question 109

Multiple Choice

Answer the following questions using the information below:
For 2010, Jake's Dog Supply Manufacturing uses machine-hours as the only overhead cost-allocation base. The accounting records contain the following information:

-Using job costing, the 2010 actual indirect-cost rate is:

• A)$4.00 per machine-hour
• B)$4.80 per machine-hour
• C)$5.00 per machine-hour
• D)$6.00 per machine-hour

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Definitions:

Organic Organization

A flexible and informal organizational structure that allows for quick adaptation to changes, characterized by low levels of hierarchy and high levels of horizontal communication.

Division of Labor

Division of labor is the allocation of different tasks to different people or groups in an effort to improve efficiency and productivity.

Hierarchy of Authority

A system within organizations where power and responsibilities are graded from the top (most authority) to the bottom (least authority).

Centralization

The process or practice of concentrating authority and decision-making in a central location or group within an organization.