Compute the overhead rate?

Nasara Manufacturing Plc has three direct labour employees that work 40 hours each a week for 50 weeks a year. Factory overhead costs of N60,000 is distributed on the basis of direct labour hours.

A. N12 per hour
B. N16 per hour
C. N10 per hour
D. N15 per hour

Correct Answer:

Option C – N10 per hour