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Factory overhead is Rs 3 00 000 and direct material cost...

This question belongs to Commerce Costing
Costing
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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?

Answer & Solution
Correct Answer: Option C
Overhead rate = Factory overhead / Direct material cost * 100
= 300000 / 500000 * 100 = 60%.
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1 Comment
Naaresh Kumar
Naaresh Kumar 8 years ago
300000/50000*100=60%
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