Use the Information Below to Answer the Following Questions Other Relevant Information: Management Has Budgeted for 20,000 Direct Labour

question 15

Multiple Choice

Use the information below to answer the following questions.
Fingers Ltd, a graphic design service, has received an inquiry from a potential customer for a quotation for a webpage design. The pricing policy of the business is based on the budgeted financial data for the coming financial year. The data for the coming year is shown below: $$\begin{array} { l r } \text { Sales } & \$ 550,000 \\\text { Direct materials } & 50,000 \\\text { Direct labour } & 300,000 \\\text { Variable overhead } & 5,000 \\\text { Advertising for business } & 5,000 \\\text { Depreciation on equipment } & 30,000 \\\text { Administration } & 27,000 \\\text { Interest } & 10,000 \\\text { Profit before tax } & 133,000\end{array}$$ Other relevant information: Management has budgeted for 20,000 direct labour hours. Overhead is applied based on direct labour hours. An estimate for the direct costs of the job to be quoted on is shown below: $$\begin{array} { l r } \text { Direct materials } & \$ 400 \\\text { Direct labour (100 hours) } & \$ 1,500\end{array}$$
-Refer to the table above. The budgeted overhead recovery rate based on direct labour hours is:

• A)$3.85 per DLH.
• B)$5.60 per DLH.
• C)$2.85 per DLH.
• D)$5.85 per DLH.

Grasp the concept of the "you" attitude and its importance in professional communication.

Acknowledge the critical nature of sourcing and documentation in reports.

Learn about the use of wikis and collaborative tools in report writing.

Understand the significance of an effective introduction and conclusion in report writing.

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Definitions:

Contextual Diversity

The variation in environments or settings that can influence one’s experience and understanding of the world.

Human Development

The comprehensive process of physical, emotional, and psychological growth and change that occurs throughout a person's life.

Zero Correlation

Zero correlation indicates a lack of any linear relationship between two variables, meaning one variable does not predict the movement of the other.

Positive Correlation

A relationship between two variables where an increase in one variable is associated with an increase in the other variable.