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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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