- Messages
- 216
- Reaction score
- 334
- Points
- 73
1)Total Overhead= Variable overhead + Fixed overhead.
2) Variable Overhead= Variable overhead rate per hour mutliply by no. of labour hours.
So using the data of month May, Total overheads as $986000 and Labour hours as 68000 and variable rate as $5
986000= 340000(68000 into 5) + Fixed cost.
Fixed cost= 986000- 340000= $646000.Ans
thank you so much....and if anyone also has any questions on AS level accounts ill try my best to help....