Question

The business always absorbs its overheads on labour
hours. In the current month, 18000 hours were worked,
actual overheads were Rs. 279000 and there was Rs.
36000 over-absorption. The overhead absorption rate per
hour was ?

Answer 1

The business always absorbs its overheads on labour

hours. In the current month, 18000 hours were worked,

actual overheads were Rs. 279000 and there was Rs.

36000 over-absorption. The overhead absorption rate per

hour was ?

17.50

Explanation:

17.50