PROBLEM 21 The Manufacturing Overhead Cost of a Company at different volume of production would be as given below: Production in Units 20,000 40,000 Indirect Material 40,000 80,000 Indirect Labour 60,000 120,000 Supervision Cost 40,000 60,000 Heat Light and Power 30,000 50,000 Depreciation and Others 70,000 70,000 Total MOH Cost 2,40,000 3,80,000 Company has Normal Capacity of 25,000 DLH and one unit of output would need 0.50 DLH. The results of working in the previous year were: Production Volume 50,000 units. Direct Labour hour Paid 24,000 hrs Actual Overhead Cost Incurred Rs. 4,50,000 Required: Overhead Three Variances. [Ans Capacity - 0, Efficiency - 14000F, Spending - 14,000U]