what is the labour hour overhead absorption rate 609999

The following data are to be used for sub-questions (i) and (ii) below:

Budgeted labour hours

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8500

Budgeted overheads

£148 750

Actual labour hours

7928

Actual overheads

£146 200

(i) Based on the data given above, what is the labour hour overhead absorption rate?

A £17.50 per hour

B £17.50 per hour

C £18.44 per hour

D £18.76 per hour

(ii) Based on the data gives above, what is the amount of overhead under-over-absorbed?

A £2550 under-absorbed

B £2529 under-absorbed

C £2550 under-absorbed

D £7460 under-absorbed

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