00:01
So, here we need to calculate the fixed budget for factory overheads in period 2.
00:15
So, we need to consider fixed cost and increased in fixed cost.
00:19
So, here from the given information first let's calculate the fixed cost for the budget output of 58000 units which is in the range of 60000 unit or less.
00:33
So, fixed cost up to 60000 unit is $2 ,30 ,000.
00:48
Now, we need to calculate additional fixed cost due to the excess production beyond 60000 units.
00:55
So, excess unit produced is equal to actual output minus 60000 units.
01:06
So, here it is 62500 minus 60000 units.
01:13
So, it will be 2500 units...