Engineering Board Exam Reviewer · Engineering Management · medium

A factory's overhead costs are ₱900,000 per year and it uses 30,000 direct labor hours. What is the overhead rate per direct labor hour?

  1. ₱0.03
  2. ₱300.00
  3. ₱30.00
  4. ₱3.00

Answer

C. ₱30.00

Solution

Overhead rate = 900,000/30,000 = ₱30 per DLH.

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