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
C. $80
D. $70
Answer: Option B
Solution(By Examveda Team)
Overhead rate = Actual manufacturing overhead costs ÷ Actual total quantity of cost allocation= $225000 ÷ 2500 = $90
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