If direct labor-hours are considered the only overhead cost ...

[APUS57]

If direct labor-hours are considered the only overhead cost driver, what is the single cost driver rate for Gregory?
 
  Gregory Company has identified three cost pools to allocate overhead costs. The following estimates are provided for the coming year:
 
  Cost Pool Overhead Costs Cost driver Activity level
  Supervision of direct labor 326,000 Direct labor-hours 900,000
  Machine maintenance 132,000 Machine-hours 960,000
  Facility rent 217,000 Square feet of area 100,000
   Total overhead costs 675,000
 
  The accounting records show the Mossman Job consumed the following resources:
 
   Cost driver Actual level
   Direct labor-hours 200
   Machine-hours 1,500
   Square feet of area 70
 
  A) 1.33 per direct labor-hour
  B) 0.80 per direct labor-hour
  C) 0.75 per direct labor-hour
  D) 1.25 per direct labor-hour

Question 2

The systematic allocation of land's cost to expense is called depreciation.
 a. True
  b. False
 
   Indicate whether the statement is true or false

[amandanbreshears]

Answer to Question 1

Answer: C

Answer to Question 2

False

[APUS57]

Thank you

[amandanbreshears]

No problemo