Figure 4-1 Adams Company Predicted Factory Overhead for 2010 and 2011

question 87

Multiple Choice

Figure 4-1 Adams Company predicted factory overhead for 2010 and 2011 would be $120,000 for each year.The predicted activity for 2010 and 2011 were 30,000 and 20,000 direct labor hours, respectively.Additional data are as follows:
The company assumes that the long-run normal production level is 20,000 direct labor hours per year.The actual factory overhead cost for the end of 2009 and 2010 was $120,000.Assume that it takes one direct labor hour to make one finished unit.
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Refer to Figure 4-1.When the normal factory overhead rate is used, the gross profits for 2010 and 2011, respectively, are

• A) $80,000 and $80,000.
• B) $200,000 and $200,000.
• C) $120,000 and $140,000.
• D) $100,000 and $100,000.

Understand and work with fractions and their applications in real-life scenarios.

Accurately set up and evaluate dimensional analysis equations, including unit cancellation and estimation.

Learn the arithmetic used in dimensional analysis problems, particularly focusing on fraction and decimal operations.

Analyze problems to determine the necessary equations and conversions for solutions.

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Definitions:

Resist Temptation

The ability to avoid yielding to a desire or impulse that may harm oneself or others.

Values Conflicts

Situations where there is a clash between differing beliefs or standards, leading to difficult choices or dilemmas.

Workplace Negatively

The impact of adverse conditions or attitudes in a work environment that can affect employee morale and productivity.

Lose-Lose Approach

A conflict resolution or negotiation strategy where all parties involved end up being worse off or not achieving their objectives.