Figure 2 The Management of Chott Industries Predicted That Overhead Cost Would

question 12

Multiple Choice

Figure 2
The management of Chott Industries predicted that overhead cost would total £180,000 for the current year. Management further estimated that under absolutely perfect conditions they could produce 25,000 units. Under efficient conditions, they can produce 23,000 units. The product is expected to appeal to the public for approximately three years during which time Chott expects to sell a total of 60,000 units. Because poor economic conditions are forecast for the upcoming year, Chott plans to produce only 18,000 units.
-Refer to Figure 2. What will Chott's overhead application rate be if Chott uses practical capacity?

• A) £10.00
• B) £7.20
• C) £7.83
• D) £9.00

---

Definitions:

IT Department

The division within a company responsible for managing and maintaining information technology systems and services.

End Users

Individuals or groups who ultimately use a product or service.

IT Positions

Job roles within the Information Technology sector, encompassing a wide range of functions from system administration to software development and IT management.

Related Files

This term generally refers to files that are associated with each other in some way, for example, by being part of the same project or application.