The Covey Corporation Is Preparing Its Manufacturing Overhead Budget for the Fourth

question 84

Multiple Choice

The Covey Corporation is preparing its Manufacturing Overhead Budget for the fourth quarter of the year. The budgeted variable manufacturing overhead rate is $4.00 per direct labor-hour; the budgeted fixed manufacturing overhead is $64,000 per month, of which $18,000 is factory depreciation. If the budgeted direct labor time for December is 4,000 hours, then the average budgeted manufacturing overhead per direct labor-hour is:

• A)$16.00 per direct labor-hour
• B)$15.50 per direct labor-hour
• C)$20.00 per direct labor-hour
• D)$24.50 per direct labor-hour

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Definitions:

Motivation Offer

An incentive or set of incentives provided to improve an individual's or group's willingness and energy to achieve a task or reach a goal.

Individual Preferences

are personal likes, dislikes, desires, or needs that influence choices and behavior.

Equity Theory

A theory of motivation that explains how employees perceive fairness in workplace reward distribution, comparing their input-outcome ratios to those of others.

Perceived Inequity

Perceived inequity occurs when an individual believes that the ratio of their inputs to outcomes is not equal to the input-outcome ratios of others, leading to feelings of dissatisfaction and unfair treatment.