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) 0.45c
C) 0.40c
D) 0.50c

Question

Quizplus · Accepted Answer

The predetermined overhead rate is calculated by dividing the total overhead costs by the total labor costs. Here, the overhead costs are $24,000 and the labor costs are $60,000. So, $24,000 / $60,000 = 0.40 or 40 cents per labor dollar.

An Entity Where Professional Labour Is $60 000 and All