Brumpy Ltd Uses a Predetermined Overhead Rate in Applying Overhead

question 27

Multiple Choice

Brumpy Ltd uses a predetermined overhead rate in applying overhead costs to product, using direct labour costs for cost centre A and machine hours for cost centre B. The estimates for this year are:
What are the predetermined overhead rates for cost centres A and B?

• A) $140 and $7.50
• B) $1.40 and $7.50
• C) $8.75 and $30
• D) $1.40 and $4.29

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Definitions:

T-Score

A standardized score that indicates how many standard deviations an observation is from the mean of the distribution.

Confidence Estimate

An interval estimate that is used to express the degree of uncertainty associated with a sample statistic.

Sample Mean

The average value calculated from a sample set of numbers, representing the central point of the data.

Standard Deviation

Standard deviation is a measure of the dispersion or variability in a set of data, quantifying how much individual data points deviate from the mean of the dataset.