Nugyen Pty Ltd Estimates Its Overhead Costs Will Be $300,000

question 66

Multiple Choice

Nugyen Pty Ltd estimates its overhead costs will be $300,000 for the coming year and it will use 20,000 direct labour hours over the same period. How much overhead will be charged to a job that uses 25 direct labour hours?

• A)$375.
• B)$15.
• C)$23.
• D)$120.

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Definitions:

Exchange Process

Activity in which two or more parties give something of value to each other to satisfy perceived needs.

Time Utility

Availability of a good or service when customers want to purchase it.

Perceived Needs

The needs that customers believe they need as identified through their personal perceptions, which may not always align with their actual needs.