Canberra has established the following information regarding fixed overheads for the coming month:
|
Fixed overheads
|
£180 000
|
|
Labour hours
|
3 000
|
|
Machine hours
|
10 000
|
|
Units of production
|
5 000
|
Actual fixed costs for the last month were £160 000.
Canberra produces many different products using highly automated
Manufacturing processes and absorbs overheads on the most appropriate bosis.
A £16
B £18
C £36
D £60