In this qs fixed ovhd is given in per unit I.e₹ 3000 per unit for 200 units, but actual output is 100 units. As the output is less then,the cost of 200 units I.e 600000 should be divided between 100 units and cost of F ovhd cost per unit should 6000 as the Cost is fixed and it is unavoidable…But it is solved otherwise
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We calculate the Fixed o/h rate based on Standard Qty and charge at the same rate on the actual Qty produced. The difference is treated as unabsorbed o/h and charged separately.
Hope you got that.
Ok Thanku👍