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Direct material used in production OMR 50,000: direct wages incurred OMR 30,000: direct expenses charged OMR 15,000. The business incurred the total overhead cost of

Direct material used in production OMR 50,000: direct wages incurred OMR 30,000: direct expenses charged OMR 15,000. The business incurred the total overhead cost of OMR 85,000. The direct labor hours worked was 900 hours.

Calculate the overhead absorption rate on the basis of prime cost: 134 %89 %147 %106 %

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