What was the company's budgeted level of machine hours for the year?
A 116098
B 119000
C 120000
D 123 000
2. A company absorbs overheads on machine hours which were budgeted at 11 250 with overheads of £258 750. Actual results were 10 980 hours with overheads of £254 692.
Overheads were:
A under-absorbed by £215 2
B over-absorbed by £4058
C under-absorbed by £4058
D over-absorbed by £215 2
3. 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 £17.20 per hour
C £18.44 per hour
D £18.76 per hour
(ii) Based on the data given above, what is the amount of overhead under/over-absorbed?
A £2550 under-absorbed
B £2529 over-absorbed
C £2550 over-absorbed
D £7460 under-absorbed
4. Canberra has established the following information regarding fixed overheads for the coming month:
Budgeted information:
Fixed overheads £ 180 000
Labour hours 3 000
Machine hours 10 000
Units of production 5 000
Actual fixed costs for the last month were £160 000.
Canberra produces many different products using highly automated manufacturing processes and absorbs overheads on the