I have a query regarding a question given in RTP.Please try to solve it.
Fixed OH (Product A) at 6000 unit level given -----Rs8 per unit
Production of Product A is increased by 1500 units and fixed OH is also increased by 5%.
query what is fixed OH cost per unit.Please give me proper working note for it.
CA. Sunil Gokhale
(Teacher)
(1484 Points)
Replied 12 June 2015
Total fixed overheads = 6,000 units x Rs.8 = Rs.48,000
Revised fixed overheads = Rs.48,000 + 5% = Rs.50,400
Revised output = 6,000 + 1,500 = 7,500 units
Revised fixed overheads per unit = Rs.50,400/7,500 = Rs.6.72
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