Actual factory overhead for that period was rs 42000

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Factory overhead absorption rate of a pharmaceutical is Rs2.50. Budgeted Factory overhead at two activity levels is asfollows for that period.


Activity level

Budgeted factory overhead

Low

20,000 Hours

Rs. 45,000

High

40,000 Hours

Rs. 75,000

Actual Factory overhead for that period was Rs. 42,000 andactual volume was 25,000 hours.

Required:

i) Variable factory overhead absorption rate

ii) Budgeted variable factoryoverhead at high activity level 40,000 hours.

Reference no: EM13482603

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