Bishop Pty Ltd Produces a Range of Products Through Several

Multiple Choice

Bishop Pty Ltd produces a range of products through several processes.Total overhead costs for process A are $200 000 and overhead is allocated to units of product on the basis of $5 of overhead for each hour of direct labour employed.If 4000 units of product D pass through process A,requiring 1500 direct labour hours,the overhead from process A to be applied to product D is:

A) $26 667
B) $13 333
C) $20 000
D) $7 500