Company, Inc

question 37

Multiple Choice

Company, Inc. applies overhead on the basis of direct labour hours. At the beginning of the year, Company, Inc. estimates overhead to be $540,000, machine hours to be 150,000, and direct labour hours to be 90,000. During January, Company, Inc. has 8,000 direct labour hours and 12,000 machine hours.
-Refer to the Figure.What is the overhead applied for January?

• A)$26,800
• B)$40,200
• C)$44,000
• D)$48,000

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Definitions:

Bar Graph

A chart that represents data with rectangular bars with lengths proportional to the values they represent.

Smallest To Highest

Ordering or arranging items based on their size or value, beginning with the smallest and ending with the largest.

Label

To assign a name, category, or description to something for the purpose of identification.

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