What Is the Charge Rate for Engineers If Direct Labour

question 76

Multiple Choice

What is the charge rate for engineers if direct labour is $30 per hour and the overhead is calculated at 60 per cent of direct labour?

• A) $18
• B) $30
• C) $36
• D) $48

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Definitions:

Journal Entry

A record in accounting that notes the details of a financial transaction, showing which accounts are affected and by what amounts.

Ledger

A book or database in which financial transactions are recorded systematically.

Source Documents

Original records that provide evidence that a transaction has occurred, such as receipts, invoices, checks, or bank statements.

Unearned Revenue

Money received by a business for goods or services yet to be provided; it is recorded as a liability until the goods or services are delivered.