Hamilton Has Budgeted Total Manufacturing Overhead Costs for the Year

question 49

Multiple Choice

Hamilton has budgeted total manufacturing overhead costs for the year as $125 000, based on 20 000 direct labour hours. The ratio of variable manufacturing overhead costs to fixed manufacturing overhead costs is 2:1. In a given month, 2000 direct labour hours are budgeted for production. How much overhead is budgeted?

• A) $6250
• B) $12 500
• C) $18 750
• D) $25 000

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Definitions:

Unauthorized Check

A bank check that is issued without the account holder's approval or knowledge, potentially leading to fraud.

Overdraft Protection

A financial service that prevents checks, withdrawals, and other transactions from resulting in a negative account balance, often by linking to another account or providing a line of credit.

Federal Law

Laws passed by the national legislature of a country, applicable throughout the country.

Dishonored Check

A check that a bank refuses to pay, usually because the account holder does not have enough funds.