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Calculate the business-wide overhead recovery rate

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Question - Williams, a professional services firm has overhead of £625,000. It operates three divisions and an accountant's estimate of the overhead allocation per division is 38% for Division 1, 22% for Division 2 and 40% for Division 3. The divisions respectively bill 4,100, 1,950 and 3,300 hours. Calculate the business-wide overhead recovery rate and the cost centre overhead recovery rate for each division.

Reference no: EM132240488

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