Basic. Canberra has established the following information regarding fixed overheads for the coming month: Budgeted information: Fixed

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Basic. Canberra has established the following information regarding fixed overheads for the coming month:

Budgeted information:

Fixed overheads £180000 Labour hours 3000 Machine hours 10000 Units of production 5000 Actual fixed costs for the last month were £160000.

Canberra produces many different products using highly automated manufacturing processes and absorbs overheads on the most appropriate basis.
What will be the predetermined overhead absorption rate?

(a) £16

(b) £18

(c) £36

(d) £60 ACCA Paper 1.2 - Financial Information for Management

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