{"id":8641,"date":"2024-04-15T03:03:53","date_gmt":"2024-04-15T03:03:53","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=8641"},"modified":"2024-04-15T03:03:53","modified_gmt":"2024-04-15T03:03:53","slug":"pick-up-the-correct-statement-from-the-following-a-over-head-rate-fractexttotal-over-head-in-rupees-for-periodtextdirect-labour-in-rupees-for-period-b-over-head-cost-per","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/pick-up-the-correct-statement-from-the-following-a-over-head-rate-fractexttotal-over-head-in-rupees-for-periodtextdirect-labour-in-rupees-for-period-b-over-head-cost-per\/","title":{"rendered":"Pick up the correct statement from the following: A. Over head rate = $$\\frac{{{\\text{total over head in rupees for period}}}}{{{\\text{direct labour in rupees for period}}}}$$ B. Over head cost per unit = Overhead ratio \u00c3\u0097 direct labour cost\/unit C. Both (A) and (B) D. Neither (A) nor (B)"},"content":{"rendered":"<p>\r\n    <!-- Check if it's an AMP page -->\r\n            <!-- Non-AMP version -->\r\n        <div class=\"mcq-container\" data-quiz-id=\"quizState_6a9bffccc7dd5\">\r\n                                            <div class=\"option\" data-option-key=\"option1\" data-is-correct=\"false\">\r\n                    Over head rate = $$\frac{{{\text{total over head in rupees for period}}}}{{{\text{direct labour in rupees for period}}}}$$                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option2\" data-is-correct=\"false\">\r\n                    Over head cost per unit = Overhead ratio \u00c3\u0097 direct labour cost\/unit                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option3\" data-is-correct=\"true\">\r\n                    Both (A) and (B)                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option4\" data-is-correct=\"false\">\r\n                    Neither (A) nor (B)                <\/div>\r\n                            \r\n            <!-- Feedback messages for non-AMP -->\r\n            <div class=\"feedback\" data-feedback=\"wrong\">Answer is Right!<\/div>\r\n            <div class=\"feedback\" data-feedback=\"right\">Answer is Wrong!<\/div>\r\n        <\/div>\r\n\r\n        <script>\r\n        document.addEventListener('DOMContentLoaded', function () {\r\n            var containers = document.querySelectorAll('.mcq-container');\r\n\r\n            containers.forEach(function(container) {\r\n                var options = container.querySelectorAll('.option');\r\n                var feedbackSelect = container.querySelector('[data-feedback=\"select\"]');\r\n                var feedbackWrong = container.querySelector('[data-feedback=\"wrong\"]');\r\n                var feedbackRight = container.querySelector('[data-feedback=\"right\"]');\r\n\r\n                options.forEach(function(option) {\r\n                    option.addEventListener('click', function() {\r\n                        var selectedOption = option.getAttribute('data-option-key');\r\n                        var isCorrect = option.getAttribute('data-is-correct') === 'true';\r\n\r\n                        \/\/ Remove previous selections\r\n                        options.forEach(function(opt) {\r\n                            opt.classList.remove('correct', 'incorrect');\r\n                        });\r\n\r\n                        \/\/ Add the correct\/incorrect class\r\n                        if (isCorrect) {\r\n                            option.classList.add('correct');\r\n                            feedbackRight.hidden = false;\r\n                            feedbackWrong.hidden = true;\r\n                        } else {\r\n                            option.classList.add('incorrect');\r\n                            feedbackRight.hidden = true;\r\n                            feedbackWrong.hidden = false;\r\n                        }\r\n\r\n                        \/\/ Hide select feedback\r\n                        feedbackSelect.hidden = true;\r\n                    });\r\n                });\r\n            });\r\n        });\r\n        <\/script>\r\n    \r\n    <!--more--><\/p>\n<p>The correct answer is: C. Both (A) and (B).<\/p>\n<p>Overhead rate is the amount of overhead cost that is assigned to each unit of product. It is calculated by dividing the total overhead cost for a period by the total direct labor cost for the same period.<\/p>\n<p>Overhead cost per unit is the amount of overhead cost that is assigned to each unit of product. It is calculated by multiplying the overhead rate by the direct labor cost per unit.<\/p>\n<p>Both overhead rate and overhead cost per unit are used to allocate overhead costs to products. Overhead rate is used to allocate overhead costs to products when direct labor costs are not available. Overhead cost per unit is used to allocate overhead costs to products when direct labor costs are available.<\/p>\n<p>Here is a more detailed explanation of each option:<\/p>\n<ul>\n<li>Option A: Overhead rate = $\\frac{{{\\text{total over head in rupees for period}}}}{{{\\text{direct labour in rupees for period}}}}$<\/li>\n<\/ul>\n<p>This option is correct. The overhead rate is calculated by dividing the total overhead cost for a period by the total direct labor cost for the same period.<\/p>\n<ul>\n<li>Option B: Over head cost per unit = Overhead ratio \u00c3\u0097 direct labour cost\/unit<\/li>\n<\/ul>\n<p>This option is also correct. The overhead cost per unit is calculated by multiplying the overhead rate by <div class=\"telegram-channel-container\">\r\n        <a href=\"https:\/\/t.me\/pscnotes2025\" target=\"_blank\" class=\"telegram-channel-button\">\r\n            <span class=\"telegram-icon\">\r\n                <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 496 512\">\r\n                    <path fill=\"white\" d=\"M248,8C111,8,0,119,0,256s111,248,248,248s248-111,248-248S385,8,248,8z M362,177L320,367c-3,14-10,18-20,14l-56-41l-27,26 c-3,3-5,5-10,5l4-63L323,196c5-5-1-7-8-3l-98,62l-42-13c-9-3-10-9,2-14l162-63C351,160,365,164,362,177z\"\/>\r\n                <\/svg>\r\n            <\/span>\r\n            Join Our Telegram Channel\r\n        <\/a>\r\n    <\/div> the direct labor cost per unit.<\/p>\n<ul>\n<li>Option C: Both (A) and (B)<\/li>\n<\/ul>\n<p>This option is the correct answer. Both overhead rate and overhead cost per unit are used to allocate overhead costs to products.<\/p>\n<ul>\n<li>Option D: Neither (A) nor (B)<\/li>\n<\/ul>\n<p>This option is incorrect. Both overhead rate and overhead <div class=\"youtube-subscribe-container\">\r\n        <a href=\"https:\/\/www.youtube.com\/channel\/UCNHT8lW-JmLC68rjBfZhdkg?sub_confirmation=1\" target=\"_blank\" class=\"youtube-subscribe-button\">\r\n            <span class=\"youtube-icon\">\r\n                <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 576 512\">\r\n                    <path d=\"M549.7 124.1c-6.3-23.7-24.8-42.3-48.3-48.6C458.8 64 288 64 288 64S117.2 64 74.6 75.5c-23.5 6.3-42 24.9-48.3 48.6-11.4 42.9-11.4 132.3-11.4 132.3s0 89.4 11.4 132.3c6.3 23.7 24.8 41.5 48.3 47.8C117.2 448 288 448 288 448s170.8 0 213.4-11.5c23.5-6.3 42-24.2 48.3-47.8 11.4-42.9 11.4-132.3 11.4-132.3s0-89.4-11.4-132.3zm-317.5 213.5V175.2l142.7 81.2-142.7 81.2z\"\/>\r\n                <\/svg>\r\n            <\/span>\r\n            Subscribe on YouTube\r\n        <\/a>\r\n    <\/div> cost per unit are used to allocate overhead costs to products.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Join Our Telegram Channel Subscribe on YouTube<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[656],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Pick up the correct statement from the following: A. 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