A business operates two production departments: machining and assembly. The budgeted direct labour hours for each department are as follows: Machining: $4000$ Assembly: $16\,000$ The business has worked out overhead absorption rates of: Machining: $\$12$ for each direct machining hour Assembly: $\$7.70$ for each direct labour hour An insurance cost of $\$4800$ that relates to the assembly department was left out by mistake when the calculations were done. What should the correct overhead absorption rate be for the assembly department?
- A$\$6.40$
- B$\$7.94$
- C$\$8.00$
- D$\$8.80$