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.

Understand the concept and function of control groups, random assignment, and placebo effects in experimental research.

Recognize the significance and mechanisms of the double-blind technique to mitigate bias in experiments.

Know how descriptive research methods such as naturalistic observation contribute to psychology.

Distinguish between causality and correlation and the limitations of correlational data in establishing causation.

---

Definitions:

Simple Interest

The fundamental interest calculation.

Monthly Basis

A frequency term that indicates something occurs every month or is calculated on a monthly basis.

Round Answers

The process of adjusting numerical figures to a specified degree of precision, often to the nearest whole number.

Finance Charge

A fee representing the cost of credit, including interest and other charges, incurred on a sum borrowed or on credit transactions.