A business applies overhead costs on the basis of direct labour at the rate of 80%...

Transcribed Image Text:

A business applies overhead costs on the basis of direct labour at the rate of 80% of direct labour. The following data is revealed: Direct labour $111 600 Direct material $ 84 200 Actual overhead $ 98 700 The amount of over or under applied overhead for the year is: a. Over absorb by $12 900 c. Over absorbed by $9,420 b. Under absorbed by $12 900 d. Under absorbed by $9,420 3. What is another term used to describe the type of costing often called 'full costing'? a. Standard costing c. Variable Costing b. Activity based costing d. Absorption costing A business applies overhead costs on the basis of direct labour at the rate of 80% of direct labour. The following data is revealed: Direct labour $111 600 Direct material $ 84 200 Actual overhead $ 98 700 The amount of over or under applied overhead for the year is: a. Over absorb by $12 900 c. Over absorbed by $9,420 b. Under absorbed by $12 900 d. Under absorbed by $9,420 3. What is another term used to describe the type of costing often called 'full costing'? a. Standard costing c. Variable Costing b. Activity based costing d. Absorption costing

Answer rating: 100% (QA)

The detailed ... View the full answer