A Service Business Expects to Incur Overheads Totalling $20 000 $\begin{array}{lll} & \text { Jobl } & \text { Job2 } \\\text { Direct Labour hours } & 700 & 900 \\\text { Machine hours } & 700 & 300\end{array}$

question 59

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: $\begin{array}{lll} & \text { Jobl } & \text { Job2 } \\\text { Direct Labour hours } & 700 & 900 \\\text { Machine hours } & 700 & 300\end{array}$ 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:

Divergent Thinking

A thought process that allows us to expand our view of the world to generate as many ideas as possible without being trapped by traditional problem-solving methods or predetermined constraints.

Practical Ideas

Concepts or solutions that can be implemented effectively and have potential for real-world application.

Human-Centered Design

A design approach that prioritizes the needs, wants, and limitations of the end-user at every stage of the design process.

Human Needs

Fundamental requirements that people need to survive and thrive, including physiological needs, safety, love, and esteem.