An entity where professional labour is $60 000 and all other costs are $24 000, has a predetermined overhead rate per labour dollar of:

A) $2.50.
B) $0.45.
C) $0.40.
D) $0.50.

Question

An entity where professional labour is $60 000 and all other costs are $24 000, has a predetermined overhead rate per labour dollar of:A)  $2.50.B)  $0.45.C)  $0.40.D)  $0.50.

Felix Kiptoch · Accepted Answer

Final Answer : C, Explanation :  To calculate the predetermined overhead rate per labour dollar, we need to divide the total overhead costs by the professional labour costs.Predetermined overhead rate = Total overhead costs / Professional labour costsPredetermined overhead rate = $24 000 / $60 000Predetermined overhead rate = $0.40Therefore, the answer is C.

An entity where professional labour is $60 000 and all other costs are $24 000, has a predetermined overhead rate per labour dollar of:

A) $2.50.
B) $0.45.
C) $0.40.
D) $0.50.

Definitions

Learning Objectives

Learning Objectives

Related questions