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Calculation of fixed overhead

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22 November 2013 If a Co is working at 80% capacity producing 16000 units and Fix OH rate is Rs. 20 per unit.....So my Q is whether Fix OH will be 1600080%20= 400000 Rs OR 1600020= 320000 Rs ?
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P V Ram

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P V Ram (Expert)
22 November 2013 From ur Q it appears budgeted capacity is 20000 units. Hence, FOH is 20000X20 = 400000

Thanks

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