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Commerce · Q661

Costing

Graduate and Post Graduate · Commerce · question 661

Q661

If an actual manufacturing overhead costs is 485000 and actual total quantity of cost allocation base is 4500 labour hours, then overhead rate would be

A.
109.87
B.
$107.78
Answer
C.
$106.56
D.
$104.34

Answer: Option B

Solution

Answer: Option B
Solution:
Overhead rate = Actual manufacturing overhead costs ÷ Actual total quantity of cost allocation
= 107.78