In a Service Organization,accounting Charges Overhead to Jobs Based on Hours

question 19

Multiple Choice

In a service organization,accounting charges overhead to jobs based on hours worked on the job.Actual overhead incurred is $15,000.Actual hours worked for client A is 200 hours,for client B is 100 hours,and unbillable is 100 hours.Calculate the overhead rate.

• A)$30 per hour.
• B)$40 per hour.
• C)$50 per hour.
• D)$60 per hour.

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