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Anderson Ltd absorbs overheads on a direct labour hours basis, the following information is available: Total budgeted manufacturing overhead: 299,250 Direct materials consumption per unit:

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Anderson Ltd absorbs overheads on a direct labour hours basis, the following information is available: Total budgeted manufacturing overhead: 299,250 Direct materials consumption per unit: 1.5kg Material price per kg: 3.00 Direct labour hours per unit: 3 1/2 Labour cost per hour: 7.50 Total budgeted production level: 9,000 units What is the indirect overhead absorption rate on the basis that Anderson currently adopts? 9.50 per labour hour 9.25 per labour hour 9.00 per labour hour 10.50 per labour hour

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