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Use Information Below to Answer the Following Questions -Refer to the Table Above

question 28

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Use information below to answer the following questions.
Oswald Ltd manufactures a wide range of leather suitcases. The following costs are expected to be incurred by the company during June:  Ind irect labour cost $26,000 Direct labour time 10,000 hours  Depreciation on equipment $20,000 Rent and Rates $13,000 Direct labour costs $98,000 Heating, lighting and power $4,000 Machine time 8,000 hours  Indirect materials $5,000 Consumables $2,000 Direct materials used $50,000 Production estimate 1,000 suitcases \begin{array}{lr}\text { Ind irect labour cost } & \$ 26,000 \\\text { Direct labour time } & 10,000 \text { hours }\\\text { Depreciation on equipment } & \$ 20,000 \\\text { Rent and Rates } & \$ 13,000 \\\text { Direct labour costs } & \$ 98,000 \\\text { Heating, lighting and power } & \$ 4,000 \\\text { Machine time } & 8,000\text { hours } \\\text { Indirect materials } & \$ 5,000 \\\text { Consumables } & \$ 2,000 \\\text { Direct materials used } & \$ 50,000 \\\text { Production estimate } & 1,000\text { suitcases }\\\end{array}
-Refer to the table above. The management accountant at Oswald Ltd, wants to revise his estimates and use machine hours as the allocation base to determine the overhead recovery rate. The revised overhead recovery rate (rounded) per machine hour will be:

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