Stacey Clothing
Stacey Clothing Assigns Overhead to Clients Based on Total

question 58

Multiple Choice

Stacey Clothing
Stacey Clothing assigns overhead to clients based on total labour hours. The following information is available for the month of June:
$\begin{array}{ll}\text { Estimated direct labour hours } & 4000 \text { hours } \\\text { Estimated indirect labour hours } & 2000 \text { hours } \\\text { Estimated overhead costs } & \$ 18000 \\\text { Actual total labour hours } & 6400 \text { hours } \\\text { Actual overhead costs } & \$ 17500\end{array}$


-The predetermined overhead rate for the month of June is:

• A) $4.50 per labour hour
• B) $9.00 per labour hour
• C) $3.00 per labour hour
• D) $1.90 per labour hour

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Definitions:

Money Supply

The sum of all financial resources in the form of cash, coins, and bank account balances present in an economy at a certain time.

Tight Money Policy

A monetary policy strategy used by central banks to slow economic growth by increasing interest rates and reducing the supply of money.

Government Bonds

Fixed-income securities issued by a government to support government spending, typically offering a regular interest payment and repayment of the principal at maturity.

Easy Money

A monetary policy stance characterized by low interest rates and high availability of credit to encourage economic growth.