Use the Information Below to Answer the Following Questions

question 61

Multiple Choice

Use the information below to answer the following questions.
Whack Ltd, a tennis racquet manufacturer, has broken the production process into three lines, each in a different department: framing, stringing, and finishing. The following information relates to each department for the month of April:
FRAMING STRINGING FINISHING
Direct Costs $20,000 $30,000 $66,000 Indirect Costs $10,000 $20,000 $30,000 Labour Hours 2,000 hours 5,000 hours 3,000 hours Machine Hours 500 hours
Production for April is 10,000 racquets.
-Refer to the table above. What is the total overhead for the organisation?

• A) $30,000
• B) $60,000
• C) $10,000
• D) $20,000

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Definitions:

Statement of Financial Position

A financial statement that shows an entity's assets, liabilities, and shareholders' equity at a specific point in time, providing a snapshot of its financial health.

Global Capital Flows

The movement of money for the purpose of investment, trade, or business operations across international borders.

Operating Activities

Activities directly related to the day-to-day operations of a business, including sales, provision of services, and costs.

Cash Position

An indicator of a company's liquidity, showing the amount of cash or cash equivalents it has on hand at a given time.