Accounting 9706 · AS & A Level · Traditional costing methods

Traditional costing methods — practice question

The information below relates to department 1. direct labour hours: actual 45000, forecast 40000 machine hours: actual 12000, forecast 10000 overheads to be apportioned to department 1: $90000 The company has been requested to provide a quotation for an order. The estimated time required in department 1 is four direct labour hours and seven machine hours. What overhead amount should be applied to the order as it moves through department 1?

  • A$8.00
  • B$9.00
  • C$52.50
  • D$63.00

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