If the direct labour is 10 000 hours at $12 per hour and all other costs are $240 000, what is the overhead rate per hour in dollars?
A) $2
B) $20
C) $24
D) $36

Question

Quizplus · Accepted Answer

The overhead rate per hour can be calculated by dividing the total overhead costs by the number of direct labor hours. So, overhead rate per hour = total overhead cost / direct labor hours = ($240,000) / (10,000) = $24 per hour. Therefore, the correct answer is C.

If the Direct Labour Is 10 000 Hours at $12