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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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