Answer the Following Questions Using the Information Below:
Gregory Company

question 35

Multiple Choice

Answer the following questions using the information below:
Gregory Company has identified three cost pools to allocate overhead costs. The following estimates are provided for the coming year:
$$\begin{array} { l r l r } \text { Cost Pool } & \text { Overhead Costs } & \text { Costdriver } & \text { Activity level } \\\text { Supervision of direct labor } & \$ 326,000 & \text { Direct labor-hours } & 900,000 \\\text { Machine maintenance } & \$ 132,000 & \text { Machine-hours } & 960,000 \\\text { Facility rent } & \$ 217,000 & \text { Square feet of area } & 100,000 \\\text { Total overhead costs } & \$ 675,000 & &\end{array}$$ The accounting records show the Mossman Job consumed the following resources:
$$\begin{array}{ll}\text { Cost driver } & \text { Actual level } \\\text { Direct labor-hours } & 200 \\\text { Machine-hours } & 1,500 \\\text { Square feet of area } & 70\end{array}$$
-If direct labor-hours are considered the only overhead cost driver,what is the single cost driver rate for Gregory?

• A) $1.33 per direct labor-hour
• B) $0.80 per direct labor-hour
• C) $0.75 per direct labor-hour
• D) $1.25 per direct labor-hour

Recognize the importance of stakeholder relationships and their impact on organizational successes.

Comprehend the significance of work-related behaviors, including task performance and counterproductive work behaviors, in organizational contexts.

Understand the role of values in guiding individual and organizational actions.

Identify the components and significance of structural capital within an organization.

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Definitions:

Project Life

The duration over which a project is expected to operate or be productive before it is decommissioned or ends.

Book Value

The net value of a company's assets found on its balance sheet, calculated as total assets minus intangible assets (patents, goodwill) and liabilities.

Net Income

The amount of profit left after all expenses, taxes, and costs have been subtracted from total revenue.

Corporate Tax Rate

The share of a business's profits that is remitted to the government as taxation.