Accounting 9706 · AS & A Level · Traditional costing methods

Traditional costing methods — practice question

A company operates two departments in its factory. The information is given below: Machining department: budgeted fixed overheads $180\,000$, budgeted hours $6\,000$. Assembly department: budgeted fixed overheads $90\,000$, budgeted hours $10\,000$. Determine the fixed overhead absorption rate per hour in the machining department?

  • A$11.25$
  • B$16.875$
  • C$30$
  • D$45$

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