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A company produces two products, S and T. Budgeted production and sales volume for S is 4,000 units per annum, and 6,000 units for T.
A company produces two products, S and T. Budgeted production and sales volume for S is 4,000 units per annum, and 6,000 units for T. 4 machine hours are required to produce unit of S. While 6 machine hours are required to produce a unit of T. The companys production overhead is budgeted at 260,000 per annum. What are the overhead absorption rates for the two products?
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