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

question 14

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. Total budgeted indirect costs for the year are:

• A)$117,000.
• B)$77,000.
• C)$72,000.
• D)$57,000.

Understand the role and limitations of intuition in decision-making.

Comprehend the development and assessment of human intelligence, including concepts of heritability, multiple intelligences, and tests designed to measure intelligence.

Understand the principal goals of investors in buying stocks and distinguish between preferred and common stocks.

Grasp the concept of stock valuation, including understanding the factors influencing the value of constant growth stocks and applying growth models accurately.

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Definitions:

Behavioural Interview

A job interview technique where candidates are asked to describe past behavior in specific situations to predict their future performance.

Past Performance

An individual's or organization's previous accomplishments or results, often used as a predictor for future success.

Written Letters

A method of communication involving the sending of messages or information through physically written or printed text.

Reference

A recommendation or information provided by a person or source, vouching for the qualifications, character, or background of someone.