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:

Per Se

A Latin phrase meaning "by itself" or "in itself," used to indicate something that is inherently or intrinsically the case.

Tying Agreements

Contracts where the buyer is required to purchase one product in order to buy another product, often considered anti-competitive.

Possible Justification

Potential reasoning or explanation that can support or legitimize a particular action or decision.

Market Leader

A company or brand that has the highest sales or market share in a particular industry or market.