Insufficient data for machine hour absorption rate

Steps:

• Identify required formula: Absorption rate = Budgeted overheads / Budgeted absorption base (machine hours).
• Note budgeted direct labour hours given (X: 5000, Y: 10000), but question asks for machine hour rate.
• Observe no budgeted overhead amounts provided for X or Y.
• Conclude no machine hour data supplied, preventing calculation.

Why A is correct:

• Cannot verify; lacks overhead and machine hour figures to confirm rates.

Why the others are wrong:

• B: Same issue—insufficient data invalidates machine hour rates for both.
• C: Duplicate of B; no basis without missing inputs.
• D: Shifts to labour hours, but still no overheads to compute.

Not enough information. Final answer: Not enough information.