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:

Trademark

A name, term, or symbol used to identify a business and its products.

Business

An organization or enterprising entity engaged in commercial, industrial, or professional activities with the aim of generating profits.

Fixed Asset Turnover Ratio

A financial ratio that measures a company's efficiency in using its fixed assets to generate sales.

Sales Earned

Income a company recognizes after delivering goods or services to a customer, reflecting actual earnings from sales.