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