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
C. $106.56
D. $104.34
Answer: Option B
Solution(By Examveda Team)
Overhead rate = Actual manufacturing overhead costs ÷ Actual total quantity of cost allocation= $485000 ÷ 4500 = $107.78
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