Draw up a flexible budget for overhead expenses on the basis of the following data and determine the overhead rates at 70%, 80% and 90% plant capacity. At 80% Capacity OMR. Variable Overheads: Indirect labor 12,000 Stores including spares 4,000 Semi-variable Overheads: Power (30% fixed, 70% variable) Repairs and maintenance (60% fixed, 40% variable) 20,000 2,000 Fixed Overheads: 11,000 3,000 Depreciation Insurance Salaries 10,000 Total Overheads 62,000 Estimated direct labor hours 1,24,000 hrs.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Draw up a flexible budget for overheadexpenses on the basis of the following data and determine
the overhead rates at 70%, 80% and 90% plant capacity.
At 80% Capacity
OMR.
Variable Overheads:
Indirect labor
12,000
Stores including spares
4,000
Semi-variable Overheads:
Power (30% fixed, 70% variable)
Repairs and maintenance (60% fixed, 40% variable)
20,000
2,000
Fixed Overheads:
Depreciation
11,000
3,000
10,000
62,000
1,24,000 hrs.
Insurance
Salaries
Total Overheads
Estimated direct labor hours
Transcribed Image Text:Draw up a flexible budget for overheadexpenses on the basis of the following data and determine the overhead rates at 70%, 80% and 90% plant capacity. At 80% Capacity OMR. Variable Overheads: Indirect labor 12,000 Stores including spares 4,000 Semi-variable Overheads: Power (30% fixed, 70% variable) Repairs and maintenance (60% fixed, 40% variable) 20,000 2,000 Fixed Overheads: Depreciation 11,000 3,000 10,000 62,000 1,24,000 hrs. Insurance Salaries Total Overheads Estimated direct labor hours
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