Bambie Ltd

question 34

Multiple Choice

Bambie Ltd. applies overheads based on direct labour hours. The company has budgeted 50 000 direct labour hours at a cost of $10 per hour, and manufacturing overhead of $750 000 in the assembly division for the year. The actual direct labour hours used for the year turns out to be 47 000 hours. What is the applied overhead for the year?

• A) $705 000
• B) $70 500
• C) $750 000
• D) 500 000

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Definitions:

Warehouse Club

A membership-based retail store offering a wide variety of merchandise, often in bulk, at discounted prices.

Annual Membership Card

A card issued to members granting them access to benefits and services for a year, often used by clubs, organizations, or businesses to foster customer loyalty.

Outlet Store

A retail store that sells products directly from the manufacturer at reduced prices, often overstock or out-of-season items.

Hypermarket

A large retail store that combines a supermarket and a department store, offering a wide variety of food and non-food products under one roof.