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Number of machines The budgeted working conditions for a cost centre are as follows: Normal working hours per week 42 hours 14 Normal weekly loss
Number of machines The budgeted working conditions for a cost centre are as follows: Normal working hours per week 42 hours 14 Normal weekly loss of hours on 5 hours per machine maintenance, etc. No. of weeks worked per year 48 Estimated annual overheads $1,24,320 Estimated direct wage rate $4 per hour Actual results in respect of a 4 weeks period are: Wages incurred $9,000 Overheads incurred $10,200 Machine hours produced 2,000 You are required to calculate: (a) the overhead rate per machine hour, and (b) the amount of under or over-absorption of wages and overheads
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