X Ltd has established the following information regarding fixed overheads for the coming year:

Budgeted information:

Total production overhead $600,000 Administration overheads $300,000 Labour hours 30,000 hours Machine hours 60,000 hours The company produces its products using a highly automated manufacturing processes

The budgeted overhead absorption rate for product costing should be:

Select one:

a. $6.66 per hour

b. $10 per labour hour

c. $20 per labour hour

d. $10 per machine hour