A manufacturing company applies absorption costing. For one month, the information for the cutting department is shown below. Budget: overheads $40000, machine hours 2800, labour hours 2600. Actual: overheads $44000, machine hours 2700, labour hours 2900. What overhead absorption rate would have been applied?
- A$14.29 per machine hour
- B$15.17 per labour hour
- C$15.38 per labour hour
- D$16.30 per machine hour