The following data are to be used for sub-questions (i) and (ii) below:
|
Budgeted labour hours |
8500 |
|
Budgeted overheads |
£148 750 |
|
Actual labour hours |
7928 |
|
Actual overheads |
£146 200 |
(i) Based on the data given above, what is the labour hour overhead absorption rate?
A £17.50 per hour
B £17.50 per hour
C £18.44 per hour
D £18.76 per hour
(ii) Based on the data gives above, what is the amount of overhead under-over-absorbed?
A £2550 under-absorbed
B £2529 under-absorbed
C £2550 under-absorbed
D £7460 under-absorbed