Accounting 9706 · AS & A Level · Traditional costing methods

Traditional costing methods — practice question

The data for a manufacturing business are shown below. Budgeted factory overheads: $\$144\,000$ Budgeted machine hours: $40\,000$ Actual factory overheads: $\$147\,600$ Actual machine hours: $36\,000$ Calculate the overhead absorption rate per machine hour.

  • A$\$3.60$
  • B$\$3.69$
  • C$\$4.00$
  • D$\$4.10$

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