Kelita's Kar Company Projects the Following Costs If Overhead Is Allocated on the Basis of Direct Labour

question 114

Multiple Choice

Kelita's Kar Company projects the following costs: $$\begin{array} { l r } \text { Direct material } & \$ 300,000 \\\text { Direct labour } & 500,000 \\\text { Indirect labour wages } & 50,000 \\\text { Sales commissions } & 30,000 \\\text { Production foremen salaries } & 75,000 \\\text { Production equipment leases } & 125,000 \\\text { Production amortization } & 60,000 \\\text { Property taxes-plant } & 25,000\end{array}$$ If overhead is allocated on the basis of direct labour hours and 25,000 direct labour hours are budgeted for next year, the estimated overhead allocation rate will be

• A) $13.40 per direct labour hours
• B) $14.60 per direct labour hours
• C) $12.40 per direct labour hours
• D) $33.40 per direct labour hours

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Definitions:

Telehealth Therapy

The provision of mental health services and counseling through electronic means, such as video calls, rather than face-to-face interactions.

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