QUESTION 2 A.. A management consultancy recovers overheads on chargeable consulting hours. Budgeted overheads were 615,000 and actual consulting hours were 32,150. Overheads were under-recovered by 35,000. If actual overheads were 694,075, what was the budgeted overhead absorption rate per hour? a) 19.13 b) 20.50 c) 21.59 d) 22.68 B.P Ltd absorbs overheads on the basis of direct labour hours. The overhead absorption rate for the period has been based on budgeted overheads of 150,000 and 50,000 direct labour hours. During the period, overheads of 180,000 were incurred and 60,000 direct labour hours were used. Which of the following statements is correct? a) Overhead was 30,000 over-absorbed. b) Overhead was 30,000 under-absorbed. c) No under- or over-absorption occurred. d) None of the above C,The following data relates to questions 4 and 5 Data concerning a company's single product is as follows: Selling price ($ per unit ) :- 6.00 ; Variable production cost ($ per unit ) :- 1.20 ; Variable selling cost($ per unit ) :-0.40 ; Fixed production cost($ per unit ) :-4.00 ; Fixed selling cost ($ per unit ) :-0.80; Budgeted production and sales for the year are 10 000 units. Qn: What is the company's break-even point, to the nearest whole unit? a) 8 000 units b) 8 333 units c) 10 000 units d) 10 909 units D.It is now expected that the variable production cost per unit and the selling price per unit will each increase by 10%, and fixed production costs will rise by 25%. What will be the new break-even point, to the nearest whole unit? a) 8 788 units b) 11 600 units c) 11 885 units d) 12 397 units