The standard overhead rate of a product is developed as follows:
Variable – Rs. 4 per unit
Fixed (budgeted production – 10,000 units) Rs. 6 per unit with standard time allowed for production of one unit of product is 5 hours. The following actual data are available for a month:
|
Production |
9,600 units |
|
|
Time taken |
47,900 units |
|
|
Overhead: |
||
|
Variable |
Rs. 38,500 |
|
|
Fixed |
Rs. 60,500 |
Compute overhead variances.