The summary productions budget of a factory with a single product for a four-week period is...

 

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The summary productions budget of a factory with a single product for a four-week period is as follows: Production quantity: 240,000 units Production costs Material: 336,000 kg at 4.10 per kg Direct labour: 216,000 hours at 4.50 per hour Variable overheads: 475,200 Fixed overheads: 1,521,600 Variable overheads are absorbed at a predetermined direct labour hour rate. Fixed overheads are absorbed at a predetermined rate per unit of output. During the four-week period the actual production was 220,000 units which incurred the following costs: Material 313,060 kg costing 1,245,980 Direct labour 194,920 hours costing 886,886 433,700 Variable overheads Fixed overheads 1,501,240 Required: Calculate: Variable overheads expenditure (10 marks) The summary productions budget of a factory with a single product for a four-week period is as follows: Production quantity: 240,000 units Production costs Material: 336,000 kg at 4.10 per kg Direct labour: 216,000 hours at 4.50 per hour Variable overheads: 475,200 Fixed overheads: 1,521,600 Variable overheads are absorbed at a predetermined direct labour hour rate. Fixed overheads are absorbed at a predetermined rate per unit of output. During the four-week period the actual production was 220,000 units which incurred the following costs: Material 313,060 kg costing 1,245,980 Direct labour 194,920 hours costing 886,886 433,700 Variable overheads Fixed overheads 1,501,240 Required: Calculate: Variable overheads expenditure (10 marks)

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To calculate the variable overheads expenditure we need to determine the difference between the budg... View the full answer