All of the Following Can Be Used as an Allocation

question 37

Multiple Choice

All of the following can be used as an allocation base for calculating factory overhead rates except:

• A) direct labor dollars
• B) direct labor hours
• C) machine hours
• D) total overhead costs

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Definitions:

Expectancy

The probability that work effort will be followed by performance accomplishment.

Instrumentality

The perceived relationship between performance and outcomes, suggesting that an individual's effort will lead to a specific result.

Expectancy Theory

A motivational theory that suggests an individual's behavior is determined by their expectations of how much their effort will lead to desired performance and rewards.

Expectancy

The belief about the likelihood that a particular effort will lead to a particular level of achievement or outcome.