Sleney Company Applies Overhead on the Basis of Direct Labor

question 152

Multiple Choice

Sleney Company applies overhead on the basis of direct labor dollars,using a rate of $1.65 per labor dollar.How much overhead would be applied to products in January if $18,600 of labor costs were incurred and 2,200 labor hours were worked?

• A) $40,920
• B) $30,690
• C) $3,630
• D) $18,600

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Definitions:

Weighted Average

An average where each data point contributes to the final average in proportion to its importance or frequency.

Pooled Sample Variance

An estimate of the variance of two or more populations under the assumption that they have the same variance, calculated by pooling the variances of these samples.

Independent Samples

Two or more groups of samples that are selected from populations such that the selection of a sample does not influence the selection of the other samples.

Point Estimate

A point estimate is a single value approximation of a population parameter based on sample data.