Job XXX required 260 direct labour hours of which 220 hours were incurred during the current accounting period. The predetermined overhead cost rate is £7.50 per direct labour hour. How much overhead should be applied to Job XXX during the current accounting period?     a. £1,650   b. £366   c. £1,950   d. £915

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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  1. Job XXX required 260 direct labour hours of which 220 hours were incurred during the current accounting period.

    The predetermined overhead cost rate is £7.50 per direct labour hour. How much overhead should be applied to Job

    XXX during the current accounting period?

     

      a.

    £1,650

      b.

    £366

      c.

    £1,950

      d.

    £915

Expert Solution
Step 1

Overhead means the cost incurred indirect in factory for the production of goods.

Manufacturing overhead rate means the rate at which the cost is incurred.

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