QUESTION 14 Which of the following would probably be the least appropriate allocation base for...
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Accounting
QUESTION 14
Which of the following would probably be the least appropriate allocation base for allocating overhead in a highly automated manufacturer of specialty valves?
| Direct labor-hours | ||
| Machine-hours | ||
| Power consumption | ||
| Machine setups |
2.5 points
QUESTION 15
Goodman Corporation has sales of 3,000 units at $80 per unit. Variable costs are 35% of the sales price. If total fixed costs are $66,000, the degree of operating leverage is:
| 0.93 | ||
| 0.79 | ||
| 1.73 | ||
| 2.67 |
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