The Following Cost Functions Were Developed for Manufacturing Overhead Costs

question 40

Multiple Choice

The following cost functions were developed for manufacturing overhead costs: $$\begin{array} { l l } \text { Manufacturing Overhead Cost } & \text { Cost Function } \\\text { Electricity } & £ 400 + £ 140 \text { per direct labour hour } \\\text { Maintenance } & £ 800 + £ 40 \text { per direct labour hour } \\\text { Supervisors' salaries } & £ 16,000 \text { per month } \\\text { Indirect materials } & £ 50 \text { per direct labour hour }\end{array}$$ If July production is expected to be 200 units that require 300 direct labour hours, estimated manufacturing overhead costs would be

• A)£17,430.
• B)£55,200.
• C)£63,200.
• D)£86,200.

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Definitions:

Internal Communications

The exchange of information and messages within an organization among employees and management to ensure everyone is informed and aligned with the company's goals and activities.

Organizational Culture

The shared values, beliefs, practices, rituals, and norms that define an organization's personality and dictate the behavior of its members.

Two-way Interaction

Two-way interaction is a communication model that involves a reciprocal exchange of information or feedback between parties.

Employee Relations Team

A group within an organization responsible for maintaining positive relationships between the employer and its employees, addressing concerns, and resolving conflicts.