Question
Cranberry has established the following information regarding fixed overheads for the coming month: Budgeted information Fixed overheads RM180,000 Labour hours 3,000 hours Machine hours 10,000
Cranberry has established the following information regarding fixed overheads for the coming month:
Budgeted information
Fixed overheads RM180,000
Labour hours 3,000 hours
Machine hours 10,000 hours
Units of production 5,000 units
Cranberry produces many different products using highly automated manufacturing processes and absorbs overheads on the most appropriate basis.
What will be the pre-determined overhead absorption rate?
| A. | RM36 | |
| B. | RM60 | |
| C. | RM16 | |
| D. | RM18 |
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