The Following Information Is Provided for the Year -Refer to the Figure

question 44

Multiple Choice

The following information is provided for the year:
$\begin{array}{lr}\text { Actual direct labour hours worked } & 36,000 \\\text { Budgeted overhead } & \$ 300,000 \\\text { Budgeted direct labour hours } & 30,000 \\\text { Actual overhead costs incurred } & \$ 360,000\end{array}$
-Refer to the figure.If normal costing is used,what is the amount of overhead applied for the year?

• A)$299,880
• B)$300,000
• C)$360,000
• D)$380,000

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Definitions:

Opportunity Cost

The expense incurred by not selecting the second-best choice available when deciding between multiple options.

Consumer Goods

Products and services that are purchased for consumption by the average household or end user, rather than for the purpose of resale or further processing.

Capital Goods

Are tangible assets such as buildings, machinery, equipment, vehicles, and tools that an organization uses to produce goods or services.

Production Possibilities Curve

A graphical representation that shows the maximum quantity of one good that can be produced for every possible quantity of another good produced, given the available resources and technology.