The McGreen Company Employees Worked 10,000 Hours Last Year with an Average

question 5

Multiple Choice

The McGreen Company employees worked 10,000 hours last year with an average hourly rate of $11 per hour. The overhead was $495,000. If overhead is based on direct labor costs, then the overhead rate is ________ per direct labor dollar.

• A) $11.00
• B) $49.50
• C) $4.50
• D) $4.95 495,000/(10,000 x 11).