Amanzi Company applies Overhead based on Direct Labour hours. At The beginning of the year, Amanzi estimates Overhead to be R700 000, Machine hours to be R200 000 and Direct labour hours to be R35000. During the year Amanzi has R5000 Direct labour hours and 10 000 Machine hours What is the Predetermined Overhead rate? a. R15.00 per machine hour b. R14.00 per direct labour hour diroct Iahor hour C R20 0O

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Amanzi Company applies Overhead based on Direct Labour hours. At The beginning of the year, Amanzi estimates
Overhead to be R700 000, Machine hours to be R200 000 and Direct labour hours to be R35000. During the year Amanzi
has R5000 Direct labour hours and 10 000 Machine hours
What is the Predetermined Overhead rate?
a. R15.00 per machine hour
b. R14.00 per direct labour hour
c. R20.00 per direct labor hour
d. R18.00 per machine hour
e. None of these are correct.
Transcribed Image Text:Amanzi Company applies Overhead based on Direct Labour hours. At The beginning of the year, Amanzi estimates Overhead to be R700 000, Machine hours to be R200 000 and Direct labour hours to be R35000. During the year Amanzi has R5000 Direct labour hours and 10 000 Machine hours What is the Predetermined Overhead rate? a. R15.00 per machine hour b. R14.00 per direct labour hour c. R20.00 per direct labor hour d. R18.00 per machine hour e. None of these are correct.
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