Economics · Cost Accounting
A company has three departments: Assembly, Finishing, and Maintenance. The budgeted data for each department is shown below: ParticularsAssemblyFinishingMaintenanceAllocated overheads$90,000$100,000$10,000Direct labour hours5,0006,000NilMachine hours10,0003,0002,000Percentage of time spent maintaining machinery60%40%NilNumber of staff6012010 What would be the most appropriate production overhead absorption rate to use in the Assembly department?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
Share:
- 1$18.33 per labour hour
- 2$17.33 per labour hour
- 3$9.90 per machine hour
- 4$9.60 per machine hour✓
Correct answer
$9.60 per machine hour
Download Single Question PDF
Save this question and verified answer as a clean study sheet with live clickable link.
👥
Share with Friends & Study Groups
Challenge your peer aspirants on WhatsApp or Telegram to solve this question!
Online Test Series
Preparing for Economics?
Practice full-length Economics mock tests with real exam timers, instant score analysis, and all-India ranking.
Chapter Practice
Practice Cost Accounting MCQs →Want more practice questions on Cost Accounting?
Solve complete topic-wise tests with detailed solutions on GkGet.
Related Practice Questions
Recommended practice questions in Economics · Cost Accounting