A-LevelAccountingTraditional costing methods9706/12 · Feb/Mar 2022 · Q251 Mark
A company has two departments in its factory. The details are shown. Machining department: budgeted fixed overheads $180000, budgeted hours 6000. Assembly department: budgeted fixed overheads $90000, budgeted hours 10000. Total budgeted fixed overheads $270000, total budgeted hours 16000. What is the fixed overhead absorption rate per hour in the machining department?
A$11.25
B$16.875
C$30
D$45
✓ Correct answer
C: $30
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