Simplex Company Has the Following Estimated Costs for Next Year

question 4

Multiple Choice

Simplex Company has the following estimated costs for next year: $\begin{array}{llcc} \text { Direct materials............................... } &\$15,000\\ \text {Direct labor..................................... } &\$55,000\\ \text { Sales commissions.......................... } &\$75,000\\ \text { Salary of production supervisor....... } &\$35,000\\ \text { Indirect materials........................... } &\$5,000\\ \text {Advertising expense........................ } &\$11,000\\ \text { Rent on factory equipment............} &\$16,000\\\end{array}$
Simplex estimates that 10,000 direct labor and 16,000 machine-hours will be worked during the year.If overhead is applied on the basis of machine-hours,the overhead rate per hour will be:

• A)$8.56
• B)$7.63
• C)$6.94
• D)$3.50

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Definitions:

Interviews

A method of data collection that involves direct, often face-to-face, communication where questions are asked to obtain information from participants.

Collaboration

The action of working with someone to produce or create something through joint effort.

Independence

the state of being free from outside control or not being influenced by others, often associated with nations, organizations, or individuals.

Action Research

A participatory research methodology focused on solving practical problems through a cycle of action and reflection.