Budgeted Capacity

Q. No. 1 Following figures are taken from annual budget of ABC manufacturers for the year 2013: Fixed factory overhead Rs. 400,000 Factory overhead absorption rate Rs. 70 per direct labour hour Variable factory overhead rate Rs. 30 per direct labour hour Following are a few figures of actual results of the year 2013: Capacity attained 110,000 hours Factory overhead Rs. 8,000,000 REQUIRED: a) Budgeted capacity that was used to compute factory overhead absorption rate. b) Analysis of under or over absorbed factory overhead into volume and budget variances