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What is the machine hour absorption rate

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Reference no: EM133006002

Question - The following data relate to one year in department A.

Budgeted machine hours 25,000

Actual machine hours 21,875

Budgeted overheads $350,000

Actual overheads $350,000

Based on the data above, what is the machine hour absorption rate as conventionally calculated?

Reference no: EM133006002

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