A Manufacturing Company Applies Overhead Based on Direct Labor Hours

question 111

Multiple Choice

A manufacturing company applies overhead based on direct labor hours. At the beginning of the year, it estimated that overhead costs would be $720,000 and direct labor hours would be 90,000. Actual overhead costs incurred were $754,400, and actual direct labor hours were 92,000. Compute the predetermined overhead rate per direct labor hour.

• A) $7.83
• B) $8.38
• C) $8.20
• D) $8.00

Identify the critical risks and assumptions in business planning.

Distinguish the various sections of a business plan and their purposes.

Recognize the importance of the marketing plan section and how it ties to sales and distribution strategies.

Understand the operational aspects of a business, including manufacturing, facilities, and labor force requirements.

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Definitions:

Vocational Fit

Determining which profession fits your personality.

Personality Characteristics

Enduring traits and qualities that define an individual's behavior, attitudes, and emotional responses.

Vocation

A person's employment or main occupation, especially regarded as particularly worthy and requiring great dedication.

Career Path

A progression or series of jobs and roles that a person undertakes throughout their working life.