A Service Business Expects to Incur Overheads Totalling $20,000 Next

question 43

Essay

A service business expects to incur overheads totalling $20,000 next month.The total direct labour time worked is 1,600 hours and total machine hours are 1,000.During next month,the business expects to do just two large jobs.Information concerning each job is as follows:
$$\begin{array} { l l l } & \text { Job1 } & \text { Job2 } \\\text { Direct Labour hours } & 700 & 900 \\\text { Machine hours } & 700 & 300\end{array}$$
REQUIRED:
A)Calculate the overhead recovery rate for the month using direct labour hours.
B)Compute how much of the month's overhead will be charged to each job.

• A)Calculate the overhead recovery rate for the month using direct labour hours.
• B)Compute how much of the month's overhead will be charged to each job.

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Definitions:

Overconfident

Having an unjustifiably high opinion of one's abilities, knowledge, or chances of success.

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When two or more people disagree.

Pseudolistening

The act of appearing to listen without actually paying attention or comprehending the message being communicated.

Barriers to Effective Communication

Factors that impede the transfer or understanding of information among parties.