Nicemeans a person who is readily available to offer assistance whencalledupon.Aniceleader, therefore, does not discriminate among workers and offersfair hearing in the case of dispute as a leader. Accordingly, beingreferred as nice and creating a reputation that befits that word is aboost to the reputation that brings a tremendous impact amongsubordinates as a leader. It is fundamental for leaders to showconcern and care towards their subordinates by assisting them in workrelated issues. Every manager would want to keep the team motivatedtowards continued company success and maintain the energy levels up. Daft and Lane (2005), states that if a team is flamboyant, thechances are that they won`t mind offering extra vigor in their joband it will be easier to beat deadlines and meet targets. Arguably,morale islinkedto productivity, and it is the work of the team leader to instillpositive energy to workers and it is at this point that the sense ofempathy pays off. In leadership everything is uncertain, andhighrisks come with high pressure. The leaders’ natural intuition hasto kick in when ascertaining the daily functions of an institution.


Inthe managerial practices, thereare five common personality traits that havedeveloped over the past 50 years. The five key categories ofpersonality traits have beendescribedas follows

Extroversions:this ischaracterizedby excitability, loquaciousness, sociability, boldness and highamounts of emotional perspicuity. In the case study, Harry wasappointedas the candidate for promotion due to his great relationship with theemployees and I was apparent that he would build up a level of faithand a vision that all the workers would buyinto.

Agreeableness:It is a personality dimension that includes trust, affection, andaltruism, among other prosocial behaviors. Leaderswith a high level of agreeableness are more cooperative while thosewho lack agreeableness tend to be competitive and manipulative.In the case study, Harry has beendepictedas willing to step in and assist. Harry would also calm theemployees’ fears and raise performance levels.

Conscientiousness:one feature of this dimension is high- levelcontemplation, by ahighimpulse and goal-oriented behaviors. In the case study, Harry is aresponsible person who is capable of leading, and several peoplenoted that he covers their back.

Neuroticism:The trait iscoveredby sadness, emotional instability, and sulkiness. Individualswith this trait are sulky and easily irritable. Harry, in this case,has a lot of potentials and the top management considers helping himfor the future top management position.

Opennessto experience:It is a trait that features insight, and imagination and people inthis quality tend to have a vast range ofinterests.Individuals with this trait are conventional and struggle to adapt toabstract thinking.

Inthe case study, it is clear that Harry distinguishes leadership andpopularity.

Thefour Myer-Briggs Type Indicator measures how people differ incollecting and assessing information for decision making and solvingproblems. The indicators include sensing versus intuition, judgingversus perceiving, introversion versus extroversion, and thinkingversus feeling.

Onfollowing the Myers – Briggs components to evaluate Harry, it isapparent that being nice is his strength in influencing the employeesand communicating.


Harryleadership style that involves empathy and creating a healthy bondcan turn to be unhealthy to some extent. Being n ice can be a traitthat he does not realize as a weakness. However, it is the blindspots characteristic many will not recognizeas a weakness that can limit effectiveness and hinder Harry`s careerdevelopment. For Harry to improve in his management, he should teachthem to fish but not to continue catching the fish for them.


Daft,&nbspR.&nbspL.,&amp Lane,&nbspP.&nbspG. (2005). Theleadership experience.Mason, OH: Thomson/South-Western.



Institution Affiliation

Question 1

Manufacturing Overhead Rate

Budgeted Direct Labor Hours

12000 units x 2.5 hours / unit=30000

1.8 hours / unit x 18000 hours=324000

=62,400 hours

Budgeted Fixed manufacturing Overhead


Budgeted Manufacturing overhead rate

$187200 / 62400 hours

=$3 per hour

Back Pack= $3 per hour x 2.5 hours

=$7.5 per unit

Fanny Pack= $3 per hour x 1.8 hours

=$5.4 per unit

Question 2

Over and Under-Absorbed Overhead

Total Manufacturing Overhead

(34060) x $3/hour + (16250) x $3/hour

=102,180 + 48,750


Fixed Manufacturing Overhead

Fixed= Actual – Variable

Actual = $270500

Variable = $1.10 x 50310 hours

= $270500 – $55341

= $ 215159

The manufacturing overhead under absorbed is:

= $ 215159 – $150930

= $64229

Question 3

Over absorption or under absorption is a cost accounting concept thatcompares the overhead costs and the expected costs. The differencebetween the two is therefore charged to expenses. In this case, thereis an under absorption by $64229. This can be analyzed in two majorforms. In the first instance, it means that the amount of overheadexpenses that has been charged to production is actually less thanactual overhead incurred. This means that the cost of production isminimized. Additionally, the closing stock will be carried at a lowercost due to the fact that overhead absorbed by closing stock is lessthan the actual one.

Question 4

There are various factors that should be taken into considerationwhen determining the most appropriate treatment of under or overabsorbed overhead. They include the quantum of the overhead over orunder absorbed as well as the events that culminated in the underabsorption of overhead (Whittington &amp Delaney, 2011). Ininstances whereby the over or under-absorption is deemed to besignificant in value, a supplementary rate is usually used to correctthe over or under absorbed overhead. The supplementary rate utilizedis calculated using the formula as shown below:

Supplementary Rate

= Under Absorbed Overhead / Actual Base.

The supplementary is positive in instances of under absorption. Inthis case, the under absorbed overhead is charged to the finishedstock of goods in addition to the work in process and to the cost ofsales by using the established supplementary rate.

However, if the under or over absorption is of relatively smallervalue or not-so-significant when compared to the actual overheadincurred, or if the under or over absorption has occurred due toabnormal reason, then the under or over absorbed overhead could becharged to Costing Profit and Loss account (Arora, 2012).

In the case of Trex by Rex, the under-absorption is of found to be $64229. This value is significant. As a result, the under absorbedoverhead will be charged to the cost of sales, closing stock and thework in progress by using a supplementary rate calculated as follows:

Supplementary Rate

= $64229 / actual hours worked

= $ 64229 / 50310 hours

= $1.28 per hour.

Back Packs = 1.28 x 2.5 = $3.20 per unit

Fanny Pack = 1.8 x 1.28 = $2.304 per unit.

So an additional cost of $3.2 per unit will be charged to the perunit cost of sales of back pack and an additional cost of $2.304 perunit will be charged to the per unit cost of sales of fanny pack torecover the under absorption of overhead.

ReferenceTop of Form

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Arora, M. N. (2012).&nbspA textbook of cost and managementaccounting. New Delhi: Vikas Publishing House PVT LTD.

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Whittington, R., &amp Delaney, P. R. (2011).&nbspWiley CPA examreview 2011-2012: Volume 1. Hoboken, N.J: Wiley.

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