PWH Ltd is currently developing an overhead budget for 201X. The following details the total fixed overheads for this period:

Estimated production and sales for the year is 850 000 units. Each unit requires 1.5 machine hours. Production overhead is recovered per machine hour.
What is the budgeted production overhead recovery rate for 201X (to the nearest penny)?
A) £2.01
B) £3.10
C) £2.23
D) £2.67

Question

PWH Ltd is currently developing an overhead budget for 201X. The following details the total fixed overheads for this period:

Estimated production and sales for the year is 850 000 units. Each unit requires 1.5 machine hours. Production overhead is recovered per machine hour.
What is the budgeted production overhead recovery rate for 201X (to the nearest penny)?
A) £2.01 
B) £3.10 
C) £2.23 
D) £2.67

Quizplus · Accepted Answer

The Answer of PWH Ltd is currently developing an overhead budget for 201X. The following details the total fixed overheads for this period:

Estimated production and sales for the year is 850 000 units. Each unit requires 1.5 machine hours. Production overhead is recovered per machine hour.
What is the budgeted production overhead recovery rate for 201X (to the nearest penny)?
A) £2.01 
B) £3.10 
C) £2.23 
D) £2.67

PWH Ltd Is Currently Developing an Overhead Budget for 201X