Bozo Pty Ltd Uses a Standard Costing System for Product

question 64

Multiple Choice

Bozo Pty Ltd uses a standard costing system for product costing. The company uses direct labour hours as the cost driver to apply overhead costs. The following amounts were budgeted for the year:
Calculate the total standard overhead rate per direct labour hour (variable and fixed) .

• A) $0.125
• B) $4.06
• C) $8.00
• D) $8.20

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Definitions:

Independent Samples

Two or more groups of samples that are collected from independent populations, and where the selection of a sample from one population does not influence the selection from another.

Significance Test

A statistical test used to determine if the observed differences between two or more groups are statistically significant.

Canadian Cities

Urban areas within the country of Canada, governed by municipal bodies and defined by specific geographical and administrative boundaries.

Margin Of Error

An expression of the amount of random sampling error in a survey's results, indicating a range within which the true value lies.