Figure 5 Peach, SA., Has Identified the Following Overhead Costs and Cost

question 108

Multiple Choice

Figure 5
Peach, SA., has identified the following overhead costs and cost drivers for next year:
The following are two of the jobs completed during the year:
The company's normal activity is 4,000 direct labour hours.
-Refer to Figure 5. If Peach, SA., used direct labour hours to assign overhead, the unit cost for Job 401 would be

• A) £117.50
• B) £111.88
• C) £105.00
• D) £102.50

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Definitions:

Summary Plan Description

A document provided by plan administrators that clearly explains the benefits, rights, and obligations under a retirement or health plan.

Employee Retirement Income Security Act

A federal law that sets minimum standards for pension plans in private industry and provides for extensive rules on the federal income tax effects of transactions associated with employee benefit plans.

Benefit Plan

A set of benefits provided by an employer to its employees, which may include health insurance, retirement savings plans, and other perks.

Consolidated Omnibus Budget Reconciliation Act

A U.S. federal law that provides individuals and their families the option to continue healthcare coverage for a limited time after losing health benefits.