Answered step by step
Verified Expert Solution
Question
...
1 Approved Answer
Semi-variable overheads: Electricity (40% fixed 60% Variable) 15,000 Repairs ( 80% fixed 20% Variable) 3,500 Fixed Overheads: Depreciation 7.250 Insurance 2,750 Salaries 8,500 Total overheads
Semi-variable overheads: Electricity (40% fixed 60% Variable) 15,000 Repairs ( 80% fixed 20% Variable) 3,500 Fixed Overheads: Depreciation 7.250 Insurance 2,750 Salaries 8,500 Total overheads 49.000 Estimated direct labor hours 92,000 Using the information given above, answer the following questions. Which one of the following will be the overhead rate at the level of 80 percent capacity? Which one of the following will be the overhead cost at the level of 90 percent capacity? If the company uses 70% production capacity, which one of the following will be the overhead rate? Jotun Paints, Oman is currently working on 70% capacity and produces 20,000 units. Particulars At 70% Capacity (OMR) Variable overheads 4000 8000 Indirect Material Indirect Labor Semi-variable overheads Electricity (40% fixed 60% Variable) 15,000 3,500 Repairs ( 80% fixed 20% Variable) Fixed Overheads: Depreciation 7,250 Insurance 2.750 Salaries 8,500 Total overheads 49,000 Estimated direct labor hours 92,000 Using the information given above, answer the following questions. Which one of the following will be the overhead rate at the level of 80 percent capacity? Which one of the following will be the overhead cost at the level of 90 percent capacity
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/07/669b6fe84768b_759669b6fe7de456.jpg)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/07/669b6fe8ee89b_760669b6fe88e16d.jpg)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started