Use Information Below to Answer the Following Questions -Refer to the Table Above

question 53

Multiple Choice

Use information below to answer the following questions.
Oswald Ltd manufactures a wide range of leather suitcases. The following costs are expected to be incurred by the company during June: $\begin{array}{lr}\text { Ind irect labour cost } & \$ 26,000 \\\text { Direct labour time } & 10,000 \text { hours }\\\text { Depreciation on equipment } & \$ 20,000 \\\text { Rent and Rates } & \$ 13,000 \\\text { Direct labour costs } & \$ 98,000 \\\text { Heating, lighting and power } & \$ 4,000 \\\text { Machine time } & 8,000\text { hours } \\\text { Indirect materials } & \$ 5,000 \\\text { Consumables } & \$ 2,000 \\\text { Direct materials used } & \$ 50,000 \\\text { Production estimate } & 1,000\text { suitcases }\\\end{array}$
-Refer to the table above. The overhead recovery rate (rounded) , using direct labour hours as the allocation base, is:

• A)$3.90 per DLH.
• B)$7.20 per DLH.
• C)$5.90 per DLH.
• D)$7.00 per DLH.

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Definitions:

Apprenticeship Programs

Formal programs combining workplace training and classroom learning to equip individuals with practical and theoretical skills in a trade or profession.

Labour Market

The supply and demand for labor, where employers seek to hire workers and workers look for jobs.

Visible Minorities

Groups of people who are not part of the majority race or ethnic group in a specific area, often identifiable by physical characteristics.

Job Instruction

A methodology used to teach individuals how to perform their job tasks efficiently and safely through a structured and systematic process.