Schlamber Company Factory overhead rate is Rs 2 per hour-00132
This subjective question is related to the book/course
vu bnk603 Consumer Banking.
It can also be found in
vu bnk603 Mid Term Solved Past Paper No. 2.
Question 1: Schlamber Company Factory overhead rate is Rs.2 per hour. Budgeted overhead for 3,000 hours per month is Rs. 8,000 and 7,000 hours is Rs. 12,000. Actual factory overhead for the month was Rs.9, 000 and actual volume was 5,000 hours.
Required:
Applied overhead
Over-or under applied overhead
Over-or under applied overhead
Applied FOH - Actual FOH = 10000 + 9000 = 1000
As the answer is positive so its Favorable balance showing over applied FOH of Rs.100
Required:
Applied overhead
Over-or under applied overhead
Answer:
Applied FOH = capacity attained x OAR = 5000 x 2 = 10000Over-or under applied overhead
Applied FOH - Actual FOH = 10000 + 9000 = 1000
As the answer is positive so its Favorable balance showing over applied FOH of Rs.100
