A Company Has a Winding Machine in a Specific Cost

question 4

Multiple Choice

A company has a winding machine in a specific cost centre.The production overhead for the cost centre is £875,000,the machine is expected to operate for 2,500 hours per annum.What is the machine hour rate?

• A) £350
• B) £35
• C) £10
• D) It is not possible to calculate from the information provided

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Definitions:

Gestalt Principle

A theory in psychology that proposes objects are viewed holistically, emphasizing the whole of anything is greater than its parts.

Proximity

The physical or psychological closeness between people or objects, often influencing relationships and interactions.

Continuation

The act of proceeding or carrying on with an activity or process without interruption.

Gestalt Psychology

A psychological approach that emphasizes the perception of whole objects rather than the individual elements.