The Alphabet Company produces 1,000 units of Alpha and 3,000 units of Beta. The firm had a total overhead of $360,000 for the year. The production of Alpha requires 3 machine hours and 6 direct labour hours per unit, whilst Beta requires one machine hour and 4 direct labour hours per unit. 40% of Alphabet Company’s overhead is related to labour and the remainder relates to machines. Machine-related overhead per hour amounts to:
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