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.