Factory o/h

The normal capacity of a factory is 10000 units p.m.

std application rate for fixed o/h                rs. 1.00 p.u

std application rate for varable o/h             rs. 2.00 p.u

production- month1      9500 units

production- month2      11000 units

actual factory oh- month1     rs. 30500

actual factory o/h-  month2      rs. 31750

calculate the amt of factory o/h allowed for the actual volume of production each month.

 

 

PLEASE HELP ME TO SOLVE THE QN.

Replies (1)

month 1 

fixed o/h = 10000*1=10000 Rs.

variable o/h  =9500*2 = 19000 Rs.

total overhead= 29000 Rs.

in the same way calculate the nd month's overhead. 

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