(18) Peter has established the following information regarding fixed overheads for the coming month: Budgeted information:...
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(18) Peter has established the following information regarding fixed overheads for the coming month: Budgeted information: Fixed overheads 200,000 Labour hours 4,000 Machine hours Units of production 20,000 10,000 Actual fixed costs for the last month were 180,000. Peter produces many different products using highly automated manufacturing processes and absorbs overheads on the most appropriate basis. What will be the pre-determined overhead absorption rate (OAR)? Given that OAR = (Budgeted overhead)/(Budgeted level of activity) A 50 B 20 C 10 D 9 (18) Peter has established the following information regarding fixed overheads for the coming month: Budgeted information: Fixed overheads 200,000 Labour hours 4,000 Machine hours Units of production 20,000 10,000 Actual fixed costs for the last month were 180,000. Peter produces many different products using highly automated manufacturing processes and absorbs overheads on the most appropriate basis. What will be the pre-determined overhead absorption rate (OAR)? Given that OAR = (Budgeted overhead)/(Budgeted level of activity) A 50 B 20 C 10 D 9
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