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A company has two production (Processing and Finishing) departments and one service department (Personnel). The data for the next production period is as follows:

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A company has two production (Processing and Finishing) departments and one service department (Personnel). The data for the next production period is as follows: Total overheads (E) Machine hours (hrs) Labour hours No of employees Labour hour rate (E) Processing 129,000 Finishing 142,000 Personnel 53,000 47,000 29,000 11,000 40,000 275 1,000 13 6.40 8.00 E5.74 All employees make use of the Personnel department. The company is calculating its overhead recovery rates. Calculate the machine hour rate for overhead recovery in the Processing Deptartment. Calculate and enter your answer in the same format as the labour hour rate.

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