overhead applied to jobs in Week 1?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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For Week 1, the budgeted labour hours for normal activity are 5,000 hours. The
budgeted fixed cost is £15,000. The fixed overhead cost rate is calculated on the
basis of budgeted cost and budgeted normal activity. At the end of the week it is
found that only 4,000 hours were worked in practice. What is the amount of fixed
overhead applied to jobs in Week 1?
a) £3,000
b) £18,000
c) £12,000
d) £15,000
Transcribed Image Text:For Week 1, the budgeted labour hours for normal activity are 5,000 hours. The budgeted fixed cost is £15,000. The fixed overhead cost rate is calculated on the basis of budgeted cost and budgeted normal activity. At the end of the week it is found that only 4,000 hours were worked in practice. What is the amount of fixed overhead applied to jobs in Week 1? a) £3,000 b) £18,000 c) £12,000 d) £15,000
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