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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