MC 5 What is the formula for calculating overhead rate?
A. Overhead rate = Total overhead costs / Direct labor hours
B. Overhead rate = Direct labor costs / Total overhead costs
C. Overhead rate = Total direct costs / Direct labor hours
D. Overhead rate = Total indirect costs / Direct labor hours
Answer:A
MC 5 What is the formula for calculating overhead rate?
A. Overhead rate = Total overhead costs / Direct labor hours B. Overhead rate = Direct labor costs / Total overhead costs C. Overhead rate = Total direct costs / Direct labor hours D. Overhead rate = Total indirect costs / Direct labor hours
Explanation: The overhead rate is the amount of overhead costs applied to each unit of production and is calculated by dividing total overhead costs by the number of direct labor hours.