Asked by Allyson Welch on May 09, 2024
Verified
Malone's plantwide overhead rate will be $20.99 per direct labor hour next year.
Plantwide Overhead Rate
Plantwide overhead rate is a single rate used to allocate all of a plant’s manufacturing overhead costs to its production activities, regardless of the department in which they occur.
Direct Labor Hour
A measure of the labor directly involved in manufacturing a product or delivering a service, often used in costing and budgeting.
- Discern the usage of direct labor hours and machine hours as foundational elements for allocation in varied overhead costing practices.
Verified Answer
YK
Yakup Kaan SaglamMay 12, 2024
Final Answer :
True
Explanation :
The statement suggests a fact and therefore can only be either true or false. The given statement states that Malone's plantwide overhead rate will be $20.99 per direct labor hour next year, and therefore the answer is A, true.
Learning Objectives
- Discern the usage of direct labor hours and machine hours as foundational elements for allocation in varied overhead costing practices.