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Nasara Manufacturing Plc has three direct labour employees that work 40 hours each a week…

Nasara Manufacturing Plc has three direct labour employees that work 40 hours each a week for 50 weeks a year. Factory overhead costs of N60,000 is distributed on the basis of direct labour hours.
Compute the overhead rate?
  • A.
    N12 per hour
  • B.
    N16 per hour
  • C.
    N10 per hour
  • D.
    N15 per hour
Correct Answer: Option C
Explanation