A business makes two products, P and Q, during January. Overheads are allocated on the basis of direct labour hours. Units manufactured and sold: P = 5000, Q = 2000 Direct labour hours per unit: P = 1.5, Q = 1 The direct costs for the month amounted to $23750. The fixed overheads totalled $6500. What is the overhead absorption rate per hour?
- A$0.68
- B$2.50
- C$3.18
- D$3.39