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Q: What percentage of total cost is added to the schedule of rates of the public work department for over-head cost?
  • A. 10%
  • B. 15%
  • C. 18%
  • D. 21.5%
Correct Answer: Option A - –Overhead expenses are the cost on the income statement except for direct labours, direct material, and directed expenses. Overhead expense includes accounting fee, advertising, insurances interest, legal fee etc. –Overhead cost is added 10% of total cost to the schedule of rates of the public work department.
A. –Overhead expenses are the cost on the income statement except for direct labours, direct material, and directed expenses. Overhead expense includes accounting fee, advertising, insurances interest, legal fee etc. –Overhead cost is added 10% of total cost to the schedule of rates of the public work department.

Explanations:

–Overhead expenses are the cost on the income statement except for direct labours, direct material, and directed expenses. Overhead expense includes accounting fee, advertising, insurances interest, legal fee etc. –Overhead cost is added 10% of total cost to the schedule of rates of the public work department.