The Production Section of a Firm Is Serviced by Personnel

question 52

Multiple Choice

The production section of a firm is serviced by personnel and computing as follows:
Personnel costs are allocated on the number of employees and computing costs on service hours. Overhead rates are based on labour hours. If the direct method is used to allocate support department costs, what is the overhead rate for the Assembly Department?

• A) $8
• B) $9.25
• C) $9.44
• D) $10.69

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Definitions:

Neutrality Pact

An agreement between states to remain neutral, especially in a conflict, neither supporting nor opposing any side involved.

Execution

The act of carrying out a plan, order, or course of action; in a legal context, it refers to the carrying out of a death sentence.

Republicanism

A political ideology centered around the concept of a republic, where the government's authority comes from the people and is exercised by elected representatives.

Slavery

A system in which individuals are owned by others, deprived of personal freedom and compelled to perform labor or services without the right to refuse.