ACCA · Question 16 · Syllabus C: Cost accounting techniques

A robotics assembly plant budgets its annual production overheads at $450,000. The plant is highly automated and uses machine hours to absorb overheads. Budgeted machine hours for the year are 90,000 hours.
During the year, actual overheads were $460,000 and actual machine hours worked were 95,000 hours.

Calculate the predetermined Overhead Absorption Rate (OAR) per machine hour. (Enter number only, no commas or symbols)