Question
Company C has established the following information regarding fixed overhead costs for the coming month Budgeted information: Direct materials 250 000 Direct labour 60 000
Company C has established the following information regarding fixed overhead costs for the coming month
Budgeted information:
Direct materials 250 000
Direct labour 60 000
Fixed overheads 180 000
Labour hours 3 000
Machine hours 10 000
Units produced 5 000
Actual variable costs for the month were 320 000 and actual fixed costs for the month were 160 000.
The company manufactures different products using a highly automated production processes and absorps overhead on the most appropriate basis.
What will be the pre-determined overhead absorption rate?
a.
48
b.
36
c.
18
d.
16
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