Accounting 9706 · AS & A Level · Traditional costing methods

Traditional costing methods — practice question

The budgeted figures for July 2021 are as follows: Direct labour ($20 per hour): $80 000 Indirect labour: $12 000 Factory expenses: $36 000 Depreciation on machinery: $30 000 Depreciation on office equipment: $18 000 Administrative expenses: $44 000 What is the budgeted overhead absorption rate per direct labour hour?

  • A$19.50
  • B$24
  • C$35
  • D$39.50

Worked solution & mark scheme

This 1-mark question has a full step-by-step worked solution and mark scheme.

  • Full mark scheme, point by point
  • Step-by-step worked solution
  • Write your answer & get it marked instantly by AI