Audrey Cleaners Is a Large Cleaning Business $\quad$ $\quad$

question 8

Multiple Choice

Audrey Cleaners is a large cleaning business.They use operations costing to measure and track the costs incurred for specific product lines.While most of the products do require some machine time,managers have determined that total labour hours drive its manufacturing overhead costs.Traditionally,indirect labour hours are one fifth of total direct labour hours.During the month of June,the following data is provided for the time worked on a large job:
Direct labaur $\quad$ $\quad$ 3000 hours at $\$ 10$ per hour
If total overhead costs during the month was $16 000 when a total of 20 000 total labour hours were worked,what is the overhead allocated to the large job?

• A) $3600
• B) $3000
• C) $2880
• D) $2560

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Definitions:

Intradermal Injection

A method of administering medication by injection just below the skin, typically used for allergy testing and vaccinations.

Needle

A slender, pointed instrument typically made of metal, used for sewing, puncturing, or injecting.

Incubation Period

The interval between exposure to infection and the appearance of the first symptom.

Rubeola Measles

A highly contagious viral infection characterized by a red skin rash; also known simply as measles.