A Single Indirect-Cost Rate Based on Direct Manufacturing Labour-Hours for the Entire

question 342

Multiple Choice

A single indirect-cost rate based on direct manufacturing labour-hours for the entire plant is:
$$\begin{array} { l c c c } & \text { Machining } & { \text { Assembly } } \\\text { Direct manufacturing labour-hours } & 15000 & 75000 & \\\text { Machine-hours } & 60000 & 30000 & \\\text { Manufacturing overhead } & \$ 300000 & { \$ 600000 }\end{array}$$

• A)$8 per direct labour-hour
• B)$10 per direct labour-hour
• C)$20 per direct labour-hour
• D)None of these answers are correct.

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Definitions:

Interquartile Range

A measure of variability, calculated as the difference between the third (75th percentile) and first quartile (25th percentile), that indicates the middle 50% of the data.

Midrange

The statistical measure calculated as the mean of the highest and lowest values in a data set, providing a simple estimation of the data’s central tendency.

Arithmetic Mean

The average of a set of numerical values, calculated by adding them together and then dividing by the number of values.

Largest Values

The highest numbers or quantities in a data set, often used in statistical analysis to determine the upper extremities.