Question: Semi-variable overheads: Electricity (40% fixed 60% Variable) 15,000 Repairs ( 80% fixed 20% Variable) 3,500 Fixed Overheads: Depreciation 7.250 Insurance 2,750 Salaries 8,500 Total overheads

fixed 20% Variable) 3,500 Fixed Overheads: Depreciation 7.250 Insurance 2,750 Salaries 8,500

Semi-variable overheads: Electricity (40% fixed 60% Variable) 15,000 Repairs ( 80% fixed 20% Variable) 3,500 Fixed Overheads: Depreciation 7.250 Insurance 2,750 Salaries 8,500 Total overheads 49.000 Estimated direct labor hours 92,000 Using the information given above, answer the following questions. Which one of the following will be the overhead rate at the level of 80 percent capacity? Which one of the following will be the overhead cost at the level of 90 percent capacity? If the company uses 70% production capacity, which one of the following will be the overhead rate? Jotun Paints, Oman is currently working on 70% capacity and produces 20,000 units. Particulars At 70% Capacity (OMR) Variable overheads 4000 8000 Indirect Material Indirect Labor Semi-variable overheads Electricity (40% fixed 60% Variable) 15,000 3,500 Repairs ( 80% fixed 20% Variable) Fixed Overheads: Depreciation 7,250 Insurance 2.750 Salaries 8,500 Total overheads 49,000 Estimated direct labor hours 92,000 Using the information given above, answer the following questions. Which one of the following will be the overhead rate at the level of 80 percent capacity? Which one of the following will be the overhead cost at the level of 90 percent capacity

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