Accounting 9706 · AS & A Level · Traditional costing methods

Traditional costing methods — practice question

A company's records gave the following information. Machining department: total fixed overheads $150000, machine hours 3000 Assembly department: total fixed overheads $60000, employee hours worked 2000 What is the hourly fixed overhead absorption rate for the machining department?

  • A$30
  • B$42
  • C$50
  • D$70

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