A business makes two products during January. Overheads are absorbed by means of the direct labour hour rate. The production information is shown below. Product P: units manufactured and sold $5000$, direct labour hours for each unit $1.5$. Product Q: units manufactured and sold $2000$, direct labour hours for each unit $1$. Direct costs for the month totalled $23750$. The fixed overheads amounted to $6500$. What was the overhead absorption rate?
- A$0.68$ per hour
- B$2.50$ per hour
- C$3.18$ per hour
- D$3.39$ per hour