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:

Zooplankton

Small floating or weakly swimming organisms that are a component of the aquatic food web.

Freshwater Supply

Refers to the availability of water from sources such as rivers, lakes, and aquifers that is not salty and is vital for human consumption, agriculture, and supporting biodiversity.

River Zone

The area or region surrounding a river, including its banks and adjacent land, which can play critical roles in ecosystem function and biodiversity.

Source Zone

The specific location or area where pollutants originate and from which contamination spreads to surrounding environments.