A business operates two production departments: assembly and machinery. The budgeted figures below are provided. Assembly: labour hours 5600; machine hours 1200; overheads $75000. Machinery: labour hours 1350; machine hours 6900; overheads $80000. Calculate the overhead absorption rate for the assembly department?
- A$13.39 per labour hour
- B$19.14 per machine hour
- C$22.30 per labour hour
- D$62.50 per machine hour