Keene Company Allocates Overhead Based on Direct Labor Hours

question 26

Multiple Choice

Keene Company allocates overhead based on direct labor hours.It allocates overhead costs of $8,000 to two different jobs as follows: Job 1: (10 hours) = $4,000; Job 2: (10 hours) = $4,000
The production process for Job 2 was then automated.Now Job 2 requires only two hours of direct labor but four hours of mechanical processing.As a result,total overhead increased to $12,000.How much overhead cost will be assigned to Job 1 after automation?

• A) $10,000
• B) $6,000
• C) $4,000
• D) $2,000

Learn about the role of different hormones in regulating hunger and satiation.

Identify the concepts of basal metabolic rate (BMR) and how it relates to energy use in the body.

Understand the mechanisms of sensory-specific satiety and how they influence eating behavior.

Comprehend how classical conditioning can affect feelings of hunger and eating patterns.

---

Definitions:

Perfectly Elastic

describes a demand or supply scenario where quantity demanded or supplied changes infinitely in response to any change in price.

Efficient Level of Output

The quantity of production that maximizes the difference between total revenue and total cost, or equivalently, minimizes average total cost.

Perfect Competitor

An idealized market structure in which many firms sell identical products, entry and exit are easy, and all buyers and sellers are well-informed, leading to perfect competition.

Inelastic Demand Curve

A situation where the demand for a good or service does not significantly change with a change in its price.