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Jaxon Ltd currently allocates overhead costs based on direct labour hours (DLH). Jaxon Ltd budgeted the following costs and activities for the current year 2020:

Jaxon Ltd currently allocates overhead costs based on direct labour hours (DLH). Jaxon Ltd budgeted the following costs and activities for the current year 2020: total overhead $1,050,000; total labour cost $1,680,000; total machine hours 60,000 MH; and total direct labour hours 210,000 DLH.

What is the current OH rate Jaxon Ltd uses to allocate OH costs?

a.$17.50/DLH

b.$28/DLH

c.a)$5/DLH

d.$8/DLH

e.Unable to be determined from the information given

Jaxon Ltd settles their creditors' accounts as follows: 30% in the month of purchase and 70% in the month following purchase. For the month of April their credit purchases totalled $85 000 and in May were $78 000.

How much cash did Jaxon Ltd pay to their creditors in the month of May?

a.$59 500

b.$82 900

c.$23 400

d.$54 600

e.$80 100

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