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
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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
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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 JobXXX 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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