Asked by Martevus Blount on May 26, 2024
Verified
If the direct labor time estimates are met,Malone will allocate $12.59 of overhead cost to each unit of Little X.
Direct Labor Time
The amount of time spent by employees directly working on producing a product or service.
Overhead Cost
General, administrative, and selling expenses that are not directly tied to any specific product or service but are necessary for running the business.
- Recognize the impact of allocating costs on the decision-making process regarding pricing and products by management.
- Understand the significance of precise overhead cost allocation and its effect on the accuracy of product costing.
Verified Answer
TD
THE DR EXPERIENCE PODCASTMay 29, 2024
Final Answer :
True
Explanation :
The question clearly states that "if the direct labor time estimates are met," $12.59 of overhead cost will be allocated to each unit of Little X. Therefore, if the direct labor time estimates are indeed met, the statement is true.
Learning Objectives
- Recognize the impact of allocating costs on the decision-making process regarding pricing and products by management.
- Understand the significance of precise overhead cost allocation and its effect on the accuracy of product costing.
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