What is the overhead absorption rate?

A company absorbs overheads on a machine hour basis. Actual machine hours were 20,000, actual overheads were $480,000 and there was over absorption of overheads of $95,000.

What is the overhead absorption rate?
A . $19.25 per unit
B . $19.25 per hour
C . $28.75 per unit
D . $28.75 per hour

View Answer

Answer: D