The Following Information Is Provided for the Year If Normal Costing Is Used,what Is the Amount of Overhead

question 62

Multiple Choice

The following information is provided for the year:
$\begin{array}{llr} \text { Actual direct labour hours worked } &27,500\\ \text {Budgeted overhead } &\$525,000\\ \text {Budgeted direct labour hours } &30,000\\ \text {Actual overhead costs incurred } &\$481,250\end{array}$
If normal costing is used,what is the amount of overhead applied for the year?

• A)$441,031.25
• B)$481,250.00
• C)$525,000.00
• D)$568,750.00

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Definitions:

Fees Earned

Income gained from providing services, reflecting work completed but not necessarily paid for by the client.

Classification

The process of organizing data, objects, or information into categories or groups based on shared characteristics or criteria.

Normal Balance

The side (debit or credit) of an account that is typically increased. For assets and expenses, it's the debit side; for liabilities, equity, and income, it's the credit side.

Office Supplies

Items used in offices for daily operations, such as stationery, paper, and computer supplies.