B) The following information relates to a flexible budget at 60% capacity. Find out the overhead costs at 50% and 70% capacity and also determine the overhead rates: Particulars Expenses at 60% capacity Variable overheads: Indirect Labour Indirect Materials Semi-variable overheads: Repair and Maintenance (70% fixed; 30% variable) Electricity (50% fixed; 50% variable) Fixed overheads: Office expenses including salaries Insurance Depreciation Estimated direct labour hours 10,500 8,400 7,000 25,200 70,000 4,000 20,000 1,20,000 hours
B) The following information relates to a flexible budget at 60% capacity. Find out the overhead costs at 50% and 70% capacity and also determine the overhead rates: Particulars Expenses at 60% capacity Variable overheads: Indirect Labour Indirect Materials Semi-variable overheads: Repair and Maintenance (70% fixed; 30% variable) Electricity (50% fixed; 50% variable) Fixed overheads: Office expenses including salaries Insurance Depreciation Estimated direct labour hours 10,500 8,400 7,000 25,200 70,000 4,000 20,000 1,20,000 hours
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Concept explainers
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
Topic Video
Question
Please do not give solution in image format thanku
Transcribed Image Text:B) The following information relates to a flexible budget at 60% capacity. Find out the overhead costs at 50%
and 70% capacity and also determine the overhead rates:
Particulars
Expenses at
60% capacity
Variable overheads:
Indirect Labour
Indirect Materials
Semi-variable overheads:
Repair and Maintenance
(70% fixed; 30% variable)
Electricity
(50% fixed; 50% variable)
Fixed overheads:
Office expenses including salaries
Insurance
Depreciation
Estimated direct labour hours
10,500
8,400
7,000
25,200
70,000
4,000
20,000
1,20,000 hours
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education