Query

IPCC 377 views 1 replies

Guest

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.

Replies (1)

Teacher

1484 Points Joined May 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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