1.The overhead recovery rate is based on direct labour cost. Profit (mark-up) will be 12% of full costs.

Annual Budget Forecast$

Direct Materials50,000

Direct Labour60,000

Variable Overheads2,400

Advertising for Business4,000

Rent of Premises10,000

Depreciation20,000

Administration expenses12,000

A job order for 300 windscreens costing $5,000 in direct materials and $6,000 in direct labour has been received.How much should be charged for the job in total (to the nearest dollar)?

Select one:

$17,741

$14,436

$15,840

$11,000

2.ABC Ltd has a standard variable overhead rate of $4 per direct labour hour. The standard quantity of direct labour per unit of production is 3 hours. The company's static budget was based on 50 000 units. Actual results for the year are as follows:

Actual units produced 45 000

Actual direct labour hours 120 000

Actual variable overhead $495 000

What was ABC Ltd's variable overhead spending variance?

Select one:

$60 000 F

$15 000 U

$45 000 U

$45 000 F