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Commerce · Q141

Costing

Graduate and Post Graduate · Commerce · question 141

Q141

Sundry overhead expenses may be apportioned in the ratio of ________.

A.
material consumed
B.
number of employees
C.
labour hours
Answer
D.
machine hours

Answer: Option C

Solution

Answer: Option C
Solution:
Sundry overhead expenses may be apportioned in the ratio of labour hours. Sundry expenses are expenses that are small in amount and rare in occurrence. For these rare and insignificant expenses, a company might use a general ledger account entitled Sundry Expenses for these items.