Serva,Inc ,Manufactures and Sells Two Products: Product R4 and Product

question 179

Multiple Choice

Serva,Inc. ,manufactures and sells two products: Product R4 and Product N4.Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: The direct labor rate is $24.70 per DLH.The direct materials cost per unit for each product is given below: The company is considering adopting an activity-based costing system with the following activity cost pools,activity measures,and expected activity: If the company allocates all of its overhead based on direct labor-hours using its traditional costing method,the predetermined overhead rate would be closest to:

• A)$41.81 per DLH
• B)$15.23 per DLH
• C)$20.42 per DLH
• D)$29.00 per DLH

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Definitions:

Political Response

Actions or strategies adopted by individuals or organizations to navigate, influence, or respond to political environments and regulations.

Government Scrutiny

The examination and close observation by government authorities into business practices, often to ensure legal and regulatory compliance.

Proactive

Refers to taking initiative and action to affect change or address issues before they occur, rather than reacting to events after they happen.

Managing Diversity

The practice of acknowledging, understanding, and leveraging differences among individuals in an organization to create an inclusive environment.