Use the information below to answer the following questions.
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 hours 5,000 hours 3,000 hours Machine Hours 500 hours
Production for April is 10,000 racquets.
-Refer to the table above. What is the total overhead for the organisation?

Question

Quizplus · Accepted Answer

To calculate overhead, we add up the indirect costs for each department. Therefore, total overhead for the organization is $60,000 ($10,000 + $20,000 + $30,000).

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