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2 Devon (Pty) Ltd is a small manufacturing company in Cape Town that manufactures desks. In the past, the financial director has noticed the following

2 Devon (Pty) Ltd is a small manufacturing company in Cape Town that manufactures desks. In the past, the financial director has noticed the following relationship between total overheads incurred and production levels: Level of production {:[" Average overhead cost "],[" per unit "]:} 5000 desks R44 7500 desks R36 At the start of the current year, in accordance with the above relationship, the financial director budgeted to manufacture 6625 desks (which represents normal capacity). However, at the end of the year financial director noticed that the actual overhead expenditure was R250 000 and the total desks manufactured were actually 7250 . REQUIRED: Calculate the following: The budgeted overhead cost for the current year The under/over recovery

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