A Company Has an Overhead Application Rate of 125% of Direct

question 55

Multiple Choice

A company has an overhead application rate of 125% of direct labor costs. How much overhead would be allocated to a job if it required total labor costing $20,000?

• A) $5,000.
• B) $16,000.
• C) $25,000.
• D) $125,000.
• E) $250,000.

---

Definitions:

Charismatic Leadership

A style of leadership characterized by an individual's ability to inspire and motivate others through their personality, communication, and actions.

Sustainability

The practice of meeting current needs without compromising the ability of future generations to meet theirs, emphasizing environmental, social, and economic balance.

Organizational Structure

The way in which a company is organized, including its hierarchy, departmentalization, and distribution of roles.

Sales Response Function

A model that illustrates the relationship between sales and marketing efforts, demonstrating how changes in marketing strategies affect sales.