Skapinker and Giles plc manufactures photocopier casing units.The prime cost of each casing is £26.50.For the year ended 31 March 20X4, the directors estimate that production overheads will be £6 761 000 and selling and administration overheads will be £3 626 000.Estimated production and sales for the financial year is 275 000 units. The company uses percentage of prime cost as its overhead recovery rate.
What is the budget production overhead recovery rate, expressed as a percentage, for the year ended 31 March 20X4 (to one decimal place)?

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The Answer of Skapinker and Giles plc manufactures photocopier casing units.The prime cost of each casing is £26.50.For the year ended 31 March 20X4, the directors estimate that production overheads will be £6 761 000 and selling and administration overheads will be £3 626 000.Estimated production and sales for the financial year is 275 000 units. The company uses percentage of prime cost as its overhead recovery rate.
What is the budget production overhead recovery rate, expressed as a percentage, for the year ended 31 March 20X4 (to one decimal place)?

Skapinker and Giles Plc Manufactures Photocopier Casing Units