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Commerce · Q293

Costing

Graduate and Post Graduate · Commerce · question 293

Q293

Direct service labour is 5000, idle time wages are 1000 and overtime premium is 450, then total figure would be

A.
$4,450
B.
$6,450
Answer
C.
$21,500
D.
$14,300

Answer: Option B

Solution

Answer: Option B
Solution:
Total Overhead = Direct service labour + Idle time wages + Overtime premium
= 1000 + 6,450