Laing Ltd uses a predetermined overhead rate in applying overheads to product cost on a direct labour cost basis for cost centre A and on a machine hour basis for cost centre B. The following details forecasts for 201X:

With respect to Laing Ltd above the predetermined overhead rate for cost centre A is £1.70 per £ of direct labour hour.

Question

Laing Ltd uses a predetermined overhead rate in applying overheads to product cost on a direct labour cost basis for cost centre A and on a machine hour basis for cost centre B. The following details forecasts for 201X:

With respect to Laing Ltd above the predetermined overhead rate for cost centre A is £1.70 per £ of direct labour hour.

Quizplus · Accepted Answer

The Answer of Laing Ltd uses a predetermined overhead rate in applying overheads to product cost on a direct labour cost basis for cost centre A and on a machine hour basis for cost centre B. The following details forecasts for 201X:

With respect to Laing Ltd above the predetermined overhead rate for cost centre A is £1.70 per £ of direct labour hour.

Laing Ltd Uses a Predetermined Overhead Rate in Applying Overheads