Q.No.3

Marks : 03

The following information has been by New Inc. in preparing its budget for November and December 2020.

	January (in Millions)	February (in Millions)
Units to be sold	180	220
Units to be produced	240	200
Direct Labor hours	480	400
Insurance of factory	400	400
Salaries : selling	260	260
Depreciation ( factory building)	200	200
Light and heat (factory)	680	600
Advertising	300	300
Indirect Factory Labor	760	660
Factory Supplies	600	500
Direct material consumption	1200	1000
Lubricants for factory machine	360	300

Calculate the following:

1. Variable FOH Rate
2. Total Variable FOH
3. Total Fixed FOH