- 8 Camden Ltd Makes Two Products X And Y Each Of Which Passes Through Two Production Departments Budgeted Production 1 (59.52 KiB) Viewed 28 times
8. Camden Ltd. makes two products, X and Y, each of which passes through two production departments. Budgeted production is 30,000 units of each product and fixed overheads are absorbed on the basis of direct labour hours. The following budgeted data are available: Dept. 1 Dept. 2 Fixed overheads £360,000 £200,000 £1.00 £2.00 Variable overheads per direct labour hour Direct labour hours per unit of X Direct labour hours per unit of Y 6 h 8 h 4 h 2 h Calculate the fixed overheads absorption rate for Dept. 1: A. £1 per labour hour B. £2 per labour hour C. £3 per labour hour D. £4 per labour hour.