Higgins Company's Manufacturing Overhead Is 40% of Its Total Conversion

question 61

Multiple Choice

Higgins Company's manufacturing overhead is 40% of its total conversion costs. If direct labour is £18,000 and if direct materials are £24,000, the manufacturing overhead is

• A)£27,000.
• B)£28,000.
• C)£16,000.
• D)£12,000.

---

Definitions:

Theory of Planned Behavior

A theory in psychology that forecasts a person's likelihood of performing a specific action at a given time and location, taking into account their attitudes, societal expectations, and their sense of control over the behavior.

Psychological Reactance

A motivational reaction to offers, persons, rules, or regulations that threaten or eliminate specific behavioral freedoms.

Resistance Effect

A phenomenon where individuals or groups oppose change or policies, often due to perceived threat to autonomy or norms.

Norm Discounting

The process by which individuals diminish the importance or relevance of norms in specific situations, often to justify their behavior.