The budget of Bisby plc shows total production overheads of £78m. They plan to work 6m hours and total labour costs for the year are £26m. Which of the following can be a suitable absorption rate for the production overhead? i. £4 per hour ii. £13 per hour iii. £3 per labour cost iv. £13 per labour cost Select one: O a. ii and iv o b. ii and iii O c.i and iii o d.i and iv
The budget of Bisby plc shows total production overheads of £78m. They plan to work 6m hours and total labour costs for the year are £26m. Which of the following can be a suitable absorption rate for the production overhead? i. £4 per hour ii. £13 per hour iii. £3 per labour cost iv. £13 per labour cost Select one: O a. ii and iv o b. ii and iii O c.i and iii o d.i and iv
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The budget of Bisby plc shows total production overheads of £78m. They plan to work 6m
hours and total labour costs for the year are £26m.
Which of the following can be a suitable absorption rate for the production overhead?
i. £4 per hour
ii. £13 per hour
iii. £3 per labour cost
iv. £13 per labour cost
Select one:
O a. ii and iv
o b. ii and iii
O c.i and iii
o d. i and iv
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