A-LevelAccountingTraditional costing methods9706/12 · Oct/Nov 2015 · Q301 Mark

A business provides the following information for a cost centre. | | $ | |---|---| | apportioned overhead costs | 160000 | | re-apportioned service department costs | 60000 | | total labour hours | 25000 | | total machine hours | 40000 | What is the overhead absorption rate for the cost centre?

A$4.00 per hour

B$5.50 per hour

C$6.40 per hour

D$8.80 per hour

✓ Correct answer

B: $5.50 per hour

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Topic: Traditional costing methods, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, Oct/Nov 2015 Paper 1 Variant 2, question 30.

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