A-LevelAccountingTraditional costing methods9706/12 · Oct/Nov 2025 · Q251 Mark
A manufacturing company uses absorption costing. The following information for one month is available for the cutting department. budget actual overheads $40 000 $44 000 machine hours 2800 2700 labour hours 2600 2900 What overhead absorption rate would have been used?
A$14.29 per machine hour
B$15.17 per labour hour
C$15.38 per labour hour
D$16.30 per machine hour
✓ Correct answer
A: $14.29 per machine hour
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