1. LMN Ltd has the following datarelating to its assembly plant for the year to 31 March Year 7:

Material costs	1,000,000
Direct labour costs	500,000
Assembly plant indirect costs	200,000

Inaddition, the stores departments has total costs of60,000, and spends 50% of its time servicing the assemblyplant. In Year 7, there were 100,000 labour hours worked and 50,000machine hours run in the assembly plant. What was the overhead costper direct labor hour?

1. 4.00
2. 2.30
3. 4.60
4. 2.00