[The Following Information Applies to the Questions Displayed Below

question 38

Multiple Choice

[The following information applies to the questions displayed below.]
Riverview Company's budget for the coming year includes $6,000,000 for manufacturing overhead,50,000 hours of direct labor,and 250,000 hours of machine time.
-If Riverview applies overhead using a predetermined rate based on labor-hours,what amount of overhead will be assigned to a unit of output which requires 0.5 machine hours and 0.25 labor hours to complete?

• A)$16.00
• B)$30.00
• C)$20.00
• D)$60.00

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Definitions:

Line Units

Are workgroups that conduct the major business of the organization.

Accounting

The systematic recording, analyzing, and reporting of financial transactions pertaining to a business.

Unity of Command

This principle asserts that each employee should receive orders from only one superior to avoid confusion and conflicts in command.

Hierarchically Connected

Organized or structured in a way that entities are ranked one above the other according to status or authority.