A Company Allocates Overhead to Production on the Basis of Direct

question 97

Multiple Choice

A company allocates overhead to production on the basis of direct labor cost.If the company's total estimated overhead is $870,000 and estimated direct labor cost is $1,160,000,determine the amount of overhead to be allocated to finished goods inventory.There is $791,000 of total direct labor cost in the jobs in the finished goods inventory.

• A) $1,054,667
• B) $593,250
• C) $1,275,853
• D) $1,079,482
• E) $79,000

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Definitions:

Concurrent Control

A management technique that involves monitoring and adjusting operations and processes as they happen in real-time.

Operant Conditioning

A training technique that changes how strong a behavior is by using incentives or consequences.

Behaviour Modification

Behaviour Modification is a psychological strategy that seeks to change or shape an individual's behavior through reinforcement, punishment, and other learning principles.

Feedback Control

A system or process that regulates itself by monitoring its own output and feeding back information to make adjustments.