What would be the oh rate

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Reference no: EM132838723

Jaxon Ltd currently allocates overhead costs based on direct labour hours (DLH). Jaxon Ltd budgeted the following costs and activities for the current year 2020: total overhead $1,050,000; total labour cost $1,680,000; total machine hours 60,000 MH; and total direct labour hours 210,000 DLH.

Problem 1:
What would be the OH rate if Jaxon Ltd used machine hours to allocate OH costs?

a. $17.50/MH
b. $8/MH
c. $28/MH
d. $5/MH
e. Unable to be determined from the information given

Reference no: EM132838723

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