Oscar,Inc ,A Manufacturer of Gift Articles,uses a Single Plantwide Rate

question 121

Multiple Choice

Oscar,Inc. ,a manufacturer of gift articles,uses a single plantwide rate to allocate indirect costs with machine hours as the allocation base.Estimated overhead costs for the year are $5,000,000.Estimated machine hours are 40,000.During the year,the actual machine hours used were 45,000.Calculate the predetermined overhead allocation rate.(Round your answer to the nearest dollar. )

• A)$111
• B)$91
• C)$125
• D)$63

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Definitions:

Incrementalism

A policy or decision-making process based on making small changes or adjustments, rather than large leaps, to gradually reach a desired outcome.

Strategic Planning

The process of defining an organization's direction and making decisions on allocating its resources to pursue this strategy.

Managers' Learning

The ongoing process through which managers acquire new skills, knowledge, and insights to improve their leadership abilities and enhance organizational performance.

Corporate Governance

The framework of rules, relationships, systems, and processes within and by which authority is exercised and controlled in corporations.