If the Direct Labour Is 10 000 Hours at $12

question 40

Multiple Choice

If the direct labour is 10 000 hours at $12 per hour and all other costs are $240 000, what is the overhead rate per hour in dollars?

• A) $2
• B) $20
• C) $24
• D) $36

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Definitions:

Source Documents

Original records that provide evidence and details of business transactions, such as receipts and invoices.

Debit

A financial record that elevates an asset or expense account, or lessens a liability or equity account.

Double-entry Accounting

An accounting method where every financial transaction results in equal and opposite effects in at least two different accounts.

Ledger

A book or collection of financial accounts where all transaction records are summarized and recorded.