alleryStart learning →Overhead is budgeted at Rs 100 per labour hour. A job takes 10 hours by a worker paid Rs 25 per hour. Overhead charged?
ARs 2,500
BRs 1,000
CRs 1,250
DRs 250
Answer & Solution
Correct answer: B. Rs 1,000
The rate is per hour, so overhead is 10 x 100 = 1,000 regardless of the actual wage rate paid.
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