A business produces three different products A, B and C. The product passes through three different departments. Estimated information of different departments are given below:

Cutting Stitching

Estimated factory overhead 200,000 450,000

Estimated direct labor hours 100,000 150,000

The proportion of direct labor hours on three products in each department is as follows:

Cutting Stitching

A 8 9

B 6 7

C 4 5

Calculate factory overhead absorption rate for Cutting department.

OMR 3

OMR 4

OMR 2

OMR 5

41- Select the most suitable basis for allocation of the insurance of building:

Number of employees

Floor area

Number of light points

No. of cars