Fixed Overheads

bainbridged

Can anyone please tell me how to work out the fixed overhead recovered in the production per activity achieved in the below example:

Budgeted Production - 10,000 units
Budgeted Labour hours - 15,000 hrs
Budgeted Fixed Overhead - £75,000

Actual Output - 11,500 units
Actual Labour hours - 17135 hrs
Actual Fixed Overhead - £78,000

reddwarf

By the info given I would assume they want two answers one for labour hours and one for production units

unless it should say 'production per unit' ?

for production units it's

75000/10000 (budgeted o/hd/budgeted prod units) x 11500 (actual production units)

labour

75000/15000 (budgeted o/hd/budgeted labour hours) x 17135 (actual labour hours)