A company has two product cost centres: the Moulding Department and the Cutting Department. Details of each cost centre are as follows: Moulding Department Cutting Total Department 21,600 Total Overhead Costs, £ Total direct machine hours 23,520 45,120 5,600 7,200 12,800 The company uses direct machine hours as a basis for absorbing overheads in each product cost centre and rounds the overhead absorption rate to one decimal point. If product A spends 4 hours in the moulding department and 9 hours in the cutting department what is the overhead cost for one unit of product A? O a. £16.80 O b. £45.50 O c. £49.80 O d. £43.80

A company has two product cost centres: the Moulding Department and the Cutting Department. Details of each cost centre are as follows: Moulding Department Cutting Total Department 21,600 Total Overhead Costs, £ Total direct machine hours 23,520 45,120 5,600 7,200 12,800 The company uses direct machine hours as a basis for absorbing overheads in each product cost centre and rounds the overhead absorption rate to one decimal point. If product A spends 4 hours in the moulding department and 9 hours in the cutting department what is the overhead cost for one unit of product A? O a. £16.80 O b. £45.50 O c. £49.80 O d. £43.80

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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