A Company Allocates $7 A) 9,914 DLH
B) 6,612 DLH
C) 3,109 DLH
D)

question 167

Multiple Choice

A company allocates $7.50 overhead to each unit produced.The company uses a plantwide overhead rate with direct labor hours as the allocation base.Given the amounts below,how many direct labor hours does the company expect in department 2?
$$\begin{array} { l c c } \text { Estirnated: } & \text { Department 1 } & \text { Department } 2 \\\text { Manufacturing overhead costs } & \$ 74,358 & \$ 49,572 \\\text { Direct labor hours } & 6,610 \mathrm { DLH } & ? \mathrm { DLH } \\\text { Machine hours } & 700 \mathrm { MH } & \mathbf { 8 0 \mathrm { MH } }\end{array}$$

• A) 9,914 DLH
• B) 6,612 DLH
• C) 3,109 DLH
• D) 7,454 DLH
• E) 16,254 DLH

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Definitions:

Situation Analysis

An assessment process that involves evaluating the internal and external factors affecting an organization's performance to identify potential opportunities and threats.

Internal Environment

Refers to the conditions, entities, events, and factors within an organization that influence its activities and choices, including its employees, management, corporate culture, and internal processes.

External Environment

All external factors outside of an organization that affect its operations, including market trends, economic conditions, and regulatory landscape.

Market-oriented

An approach or strategy that prioritizes understanding and meeting the desires and needs of customers within a market.