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Question 1: Factory overhead absorption rate of a pharmaceutical is Rs 2.50. Budgeted Factory overhead at two activity levels is as follows 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 and actual volume was 25,000 hours.
Required:

1. i. Variable factory overhead absorption rate
2. ii. Budgeted variable factory overhead at high activity level 40,000 hours.
3. iii. Budgeted fixed factory overhead