1. Arnold Ltd allocates overhead based on machine hours and estimates its total overhead costs will be $140,000 for the coming year. It will use 28,000 direct labour hours and 14,000 machine hours during that same period.

   How much overhead will be charged to a job that used 15 machine hours?

   	a.	$10
   	b.	$75
   	c.	$150
   	d.	Unable to be determined from the information given
   	e.	$225

2. The following information is available for product H57.

   Direct material costs $48.00 per unit of product

   Costs of machining $37.50 per machine hour

   Costs of packing $12.50 per carton packed

   The firm applies 60% mark-up on costs.

   What is the total full cost of an order for 1000 units of product H57 which will use 65 machine hours and 45 cartons?

   	a.	$48 562.50
   	b.	None of the answers is correct
   	c.	$51 000.00
   	d.	$50 437.50
   	e.	$48 000.00