Use the Information Below to Answer the Following Question(s)

question 153

Multiple Choice

Use the information below to answer the following question(s) .
Sable Company is debating the use of direct labour cost or direct labour hours as the cost allocation base for allocating manufacturing overhead. The following information is available for the most recent year:

-If Sable Company uses direct labour hours as the allocation base, what would the predetermined manufacturing overhead rate be?

• A) $1.60 per direct labour hour
• B) $1.40 per direct labour hour
• C) $1.43 per direct labour hour
• D) $1.63 per direct labour hour

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Definitions:

Marginal Utility

The extra pleasure or benefit gained by a person from consuming one more unit of a product or service.

Breast Milk

The milk produced by human breasts or mammary glands, specifically designed to feed babies and infants, containing essential nutrients for development.

Demand Curve

A visual chart that illustrates how the demand for a product or service, as indicated by the quantity consumers are willing to purchase, varies with price changes over a specific timeframe.

Life Threatening Disease

A severe health condition that has a high probability of causing death.