Accounting 9706 · AS & A Level · Traditional costing methods

Traditional costing methods — practice question

In March, a company had an overhead absorption rate of $2$ per machine hour. In April, this rate went up. What had risen in April and led to the change in the overhead absorption rate?

  • Acost of insurance for the factory
  • Bhourly pay rate of production workers
  • Cnumber of actual machine hours worked
  • Dnumber of budgeted machine hours

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