For a department, the standard overheads rate is ₹2.50 per hour and the overheads allowances are as follows: Activity level (hours) Budget overheads allowance (₹) 3,000 10,000 7,000 18,000 11,000 26,000 Calculate the nor

CS Executive · Cost and Management Accounting · PYQS · June 2016
For a department, the standard overheads rate is ₹2.50 per hour and the overheads allowances are as follows: Activity level (hours) Budget overheads allowance (₹) 3,000 10,000 7,000 18,000 11,000 26,000 Calculate the normal capacity level on the basis of which the standard overheads rate has been worked out —
(A) 8,000 Hours
(B) 7,000 Hours
(C) 6,000 Hours
(D) 9,000 Hours.

Answer & Explanation:

Correct Answer: Option (A)

Official answer key: (A).

Topics: Overhead Costing

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