Q668
If budgeted annual manufacturing indirect cost is 2250000 and cost allocation base is 2800 labour hour, then budgeted manufacturing overhead rate will be
A.
$803.571 per labour hour
AnswerB.
$805 per labour hour
C.
$905 per labour hour
D.
$802 per labour hour
Answer: Option A
Solution
Answer: Option A
Solution:
Manufacturing overhead = Manufacturing indirect cost ÷ Cost allocation base = 803.571 per labour hour