A Company Allocates $7

question 44

Multiple Choice

A company allocates $7.50 overhead to products based on the number of direct labor hours worked. The company uses a plantwide overhead rate with direct labor hours as the allocation base. Given the amounts below, how many direct labor hours does the company expect in department 2?
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• A) 9,914 DLH
• B) 6,612 DLH
• C) 3,109 DLH
• D) 7,454 DLH
• E) 16,254 DLH

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Definitions:

Reacquired Stock

Stock that has been repurchased by the issuing company from shareholders.

Common Stock

Shares representing ownership in a corporation, giving holders voting rights and a claim on a portion of the company's profits through dividends.

Preferred Stock

A class of ownership in a corporation that has a higher claim on assets and earnings than common stock, often including fixed dividends.

Stock Dividend

A payment made by a corporation to its shareholders in the form of additional shares, rather than cash.