Correct Answer:
A. Rs. 20 per direct labor hour
Rate = 240,000 / 12,000 = Rs. 20 per direct labor hour.
November 13, 2026 · Accounting and Finance MCQs, Cost & Management Accounting MCQs
Budgeted overhead is Rs. 240,000 and budgeted direct labor hours are 12,000. The predetermined overhead rate is:
Related MCQs
The main objective of government accounting is to:
A.
Maximize profit for the government
B.
Reduce the number of audits
C.
Provide accountability and stewardship over public resources
D.
Help private firms prepare tax returns
Correct answer is:
C. Provide accountability and stewardship over public resources
Do you agree with this answer?
The crowding-out effect refers to:
A.
Private investment increasing government revenue
B.
Government borrowing raising interest rates and reducing private investment
C.
Government spending reducing unemployment
D.
Taxes reducing consumption only
Correct answer is:
B. Government borrowing raising interest rates and reducing private investment
Do you agree with this answer?
Performance (value-for-money) audit examines the:
A.
Accuracy of the trial balance only
B.
Economy, efficiency and effectiveness of an entity's operations
C.
Tax liability only
D.
Share price movements
Correct answer is:
B. Economy, efficiency and effectiveness of an entity's operations
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Treasury bills (T-bills) are:
A.
Long-term bonds with 30-year maturity
B.
Short-term government securities issued at a discount
C.
Shares of public companies
D.
Foreign exchange reserves
Correct answer is:
B. Short-term government securities issued at a discount
Do you agree with this answer?
Current assets are Rs. 300,000 and current liabilities are Rs. 150,000. The current ratio is:
A.
0.5 : 1
B.
3 : 1
C.
2 : 1
D.
1 : 2
Correct answer is:
C. 2 : 1
Do you agree with this answer?
What is the main objective of an external audit of financial statements?
A.
To express an opinion on whether the financial statements are prepared, in all material respects, in accordance with the applicable reporting framework
B.
To prepare the financial statements of the entity
C.
To guarantee that the entity will remain profitable in the future
D.
To detect and prevent every fraud in the entity
Correct answer is:
A. To express an opinion on whether the financial statements are prepared, in all material respects, in accordance with the applicable reporting framework
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