Q144
Factory overhead is Rs 3,00,000 and direct material cost is Rs 5,00,000 What is the overhead rate under direct material cost method?
A.
25%
B.
30%
C.
60%
AnswerD.
75%
Answer: Option C
Solution
Answer: Option C
Solution:
Overhead rate = Factory overhead / Direct material cost * 100 = 300000 / 500000 * 100 = 60%.