Question
Whack Ltd, a tennis racquet manufacturer, has broken the production process into three lines, each in a different department: framing, stringing, and finishing. The following
Whack Ltd, a tennis racquet manufacturer, has broken the production process into three lines, each in a different department: framing, stringing, and finishing. The following information relates to each department for the month of April: FRAMING STRINGING FINISHING Direct Costs $20,000 $30,000 $66,000 Indirect Costs $10,000 $20,000 $30,000 Labour Hours 2,000 hrs 5,000 hrs 3,000 hrs Machine hours 500 hrs 0 hrs 0 hrs
Production for April is 10,000 racquets Refer to the table above. What is the total overhead for the organisation?
A. $60,000.
B. $20,000.
C. $30,000.
D. $10,000.
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