Austin Company Uses a Job Order Cost Accounting System

question 7

Multiple Choice

Austin Company uses a job order cost accounting system. The company's executives estimated that direct labor would be $2,000,000 (200,000 hours at $10/hour) and that factory overhead would be $1,500,000 for the current period. At the end of the period, the records show that there had been 180,000 hours of direct labor and $1,200,000 of actual overhead costs. Using direct labor hours as a base, what was the predetermined overhead allocation rate?

• A) $6.00 per direct labor hour.
• B) $7.50 per direct labor hour.
• C) $6.67 per direct labor hour.
• D) $8.33 per direct labor hour.
• E) $7.08 per direct labor hour.

Understand the disadvantages of social communication models and mitigation strategies by companies.

Recognize the phenomena of information overload, its effects, and coping mechanisms.

Understand the role and impact of technology in enhancing the effectiveness of communication processes.

Recognize the importance of ethics, transparency, and legal considerations in communication, especially in digital environments.

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Definitions:

Collective Bargaining

The process by which labor unions and employers negotiate contracts regarding wages, hours, benefits, and working conditions on behalf of employees.

Political Activism

The collective actions or endeavors to promote, impede, direct, or intervene in social, political, economic, or environmental reform with the desire to make changes in society.

Employee Ownership

A business structure where employees have an ownership stake in the company, often through stock options or shares.

NLRA

The National Labor Relations Act, a foundational law in the United States that protects the rights of workers to organize, bargain collectively, and engage in other activities concerning their welfare.