PWH Ltd Is Currently Developing an Overhead Budget for 201X

question 13

Multiple Choice

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

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Definitions:

Neutral Fiber

In beam bending, it's the fiber at the midpoint of the cross section which experiences no compressive or tensile stress when the beam is flexed.

C-Channel Frame

The structure of a frame, often used in vehicle construction or building, characterized by its cross-sectional shape resembling the letter "C", providing strength and flexibility.

Flanges

Flat rims, edges, ribs, or collars, often used to strengthen an object, attach it to another object, or for handling.

Section Modulus (SM)

A geometric property for a given cross-section used in the design of beams or flexural members.