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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
Answer: D
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