ABC Co. Ltd is a manufacturing company. It produces two products A and B. It has assigned 2 and 5 points to A and B, respectively, in order to compensate for the basic differences in products. The estimated factory overhead for the budget period is Rs. 2, 40,000. The normal capacity is:
|
A |
5,000 units |
|
|
B |
6,000 units |
You are required to calculate the overhead absorption rate.