The following information relates to ABC company Ltd: Manufacturing overheads GH600,000 Direct material costs GH200,000 Machine...

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The following information relates to ABC company Ltd: Manufacturing overheads GH¢600,000 Direct material costs GH¢200,000 Machine hours 600,000 hours Direct labour hours 200,000 hours Units of production 1,000,000 units Direct labour is paid at a rate of GH¢3 per labour hour. Required: Compute overhead absorption rates using different rates of absorption. The following information relates to ABC company Ltd: Manufacturing overheads GH¢600,000 Direct material costs GH¢200,000 Machine hours 600,000 hours Direct labour hours 200,000 hours Units of production 1,000,000 units Direct labour is paid at a rate of GH¢3 per labour hour. Required: Compute overhead absorption rates using different rates of absorption.

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