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
B. $805 per labour hour
C. $905 per labour hour
D. $802 per labour hour
Answer: Option A
Solution(By Examveda Team)
Manufacturing overhead = Manufacturing indirect cost ÷ Cost allocation base= $2250000 ÷ 2800 = $803.571 per labour hour
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