Fixed Overheads
bainbridged
Registered Posts: 3 New contributor 🐸
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
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
0
Comments
-
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)0
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