A firm uses machine hours to allocate overhead cost. During the period, budgeted variable overhead is Rs. 10000 and budgeted machine hours is 100 hours for budgeted volume of 1000 units. The firm produced 1200 units consuming 150 hours and spent Rs. 15000 towards variable overhead. The budgeted variable overhead rate is
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Given: Budgeted variable overhead = Rs. 10000 Budgeted machine hours = 100 hours Budgeted variable overhead rate per machine hour = Budgeted variable overhead / Budgeted machine hours Budgeted variable overhead rate per machine hour = Rs. 10000 / 100 Show more…
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