Vidyalelo
Commerce · Q658

Costing

Graduate and Post Graduate · Commerce · question 658

Q658

If an actual manufacturing overhead costs is 225000 and actual total quantity of cost allocation base is 2500 labour hours, then overhead rate will be

A.
$60
B.
$90
Answer
C.
$80
D.
$70

Answer: Option B

Solution

Answer: Option B
Solution:
Overhead rate = Actual manufacturing overhead costs ÷ Actual total quantity of cost allocation
= 90