alleryStart learning →Rent and depreciation total Rs 9,00,000; normal output 90,000 units, but 1,20,000 made. Overhead per unit?
ARs 10
BRs 9
CRs 7.50
DRs 12
Answer & Solution
Correct answer: C. Rs 7.50
With abnormally high output the overhead is spread over actual units, so 9,00,000 / 1,20,000 = Rs 7.50.
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