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: a. i and iii  b. i and iv c. ii and iii  d. ii and iv

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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:
a. i and iii 
b. i and iv
c. ii and iii 
d. ii and iv

 

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