If Projected Factory Overhead Is $360 000 P

question 4

Multiple Choice

If projected factory overhead is $360 000 p.a. and projected direct labour hours are 60 000 hours p.a., the overhead application rate is:

• A) $60 000.
• B) $6 per direct labour hour.
• C) $360 000.
• D) $0.60 per direct labour hour.

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Definitions:

Profit-Maximizing

A strategy where a company seeks to achieve the highest possible profit, often by adjusting output levels or prices.

Units

Basic quantities or measures adopted to quantify and represent variables in quantitative analyses, such as units of measurement in physics or economic units in economics.

Profit-Maximizing

The process or strategy by which a firm determines the price and output level that returns the greatest profit.

Loss-Minimizing

A strategy aimed at reducing the negative impact or minimizing the losses in a business operation or an investment.