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Audrey Cleaners Is a Large Cleaning Business \quad \quad

Question 8

Multiple Choice

Audrey Cleaners is a large cleaning business.They use operations costing to measure and track the costs incurred for specific product lines.While most of the products do require some machine time,managers have determined that total labour hours drive its manufacturing overhead costs.Traditionally,indirect labour hours are one fifth of total direct labour hours.During the month of June,the following data is provided for the time worked on a large job:
Direct labaur \quad \quad 3000 hours at $10\$ 10 per hour
If total overhead costs during the month was $16 000 when a total of 20 000 total labour hours were worked,what is the overhead allocated to the large job?


A) $3600
B) $3000
C) $2880
D) $2560

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