The following data are available for a firm which manufactures one type of product:
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the following data are available for a firm which manufactures one type of product 611303
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Variable overhead |
10 hours @ £2.50 per hour |
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Fixed overhead |
10 hours @ £4.00 per hour |
The OARs for the variable and fixed overheads were calculated on the basis of labour hours. Budgeted output for the period was 2,000 units. Actual data for the period were recorded as follows:
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Output |
1,950 units |
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Variable overheads incurred: |
£53,000 |
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Fixed overheads incurred: |
£77,500 |
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Actual hours incurred: |
22,000. |
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