Fortune Company Uses a Predetermined Overhead Rate Based on Direct

question 21

Multiple Choice

Fortune Company uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs.The cost records for October will show: $$\begin{array} { | l | c | } \hline \text { On October 1, the estimates for the month were: } & \\\hline \text { Manufacturing overhead } & \$ 17,000 \\\hline \text { Direct labor-hours } & 13,600 \\\hline \text { During october, the actual results were: } & \\\hline \text { Manufacturing overhead } & \$ 18,500 \\\hline \text { Direct labor-hours } & 12,000 \\\hline\end{array}$$

• A) Overapplied overhead of $1,500.
• B) Underapplied overhead of $1,500.
• C) Overapplied overhead of $3,500.
• D) Underapplied overhead of $3,500.

Identify the benefits and drawbacks of using a matrix structure within organizations.

Differentiate between various organizational structures based on functions, products, geographic locations, and customer orientations.

Recognize the role of cross-functional and project teams in organizational structure and effectiveness.

Describe the concept and advantages of network and boundaryless organizations.

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Definitions:

Technological Synergy

The cooperative interaction among various technological systems or devices that results in a combined effect greater than the sum of their separate effects.

Technology Transfer

The process of moving skills, knowledge, technologies, methods of manufacturing, samples of manufacturing, and facilities among governments or universities and other institutions to ensure that scientific and technological developments are accessible to a wider range of users.

Cost Leadership

A strategy businesses use to become the lowest-cost producer in their industry to gain a competitive advantage.

Porter's Generic

Strategies developed by Michael E. Porter that outline three potential strategies for achieving competitive advantage: cost leadership, differentiation, and focus.