At 70% At 80% At 90%

Capacity Capacity Capacity Capacity

Variable Overheads
12,000 X 12,000 X
70% / 80% = 90% / 80% =
Indirect Labour 10,500 12,000 13,500
4,000 X 70% / 4,000 X 90% /
Stores including Spares 80% = 3,500 4,000 80% = 4,500
Semi-Variable overheads
(Rs. 20,000) Power: 30% is
Fixed 6,000 6,000 6,000
14,000 X
70% / 80% =
70 % is Variable 12,250 14,000 15,750
(Rs. 2,000) Repairs and
Maintenance - 60% is fixed
and 40% is variable
Fixed 1,200 1,200 1,200
Variable 700 800 900
Fixed Overheads
Depreciation 11,000 11,000 11,000
Insurance 3,000 3,000 3,000
Salaries 10,000 10,000 10,000
(A) Total Overheads 58,150 62,000 65,850
1,24,000 X 1,24,000 X
(B) Estimated Labour 70% / 80% = 90% / 80% =
Hrs. 1,08,500 hrs 1,24,000 hrs 1,39,500 hrs
62,000 /
1,24,000 =
Direct Labour Hr Rate (A/B) 0.536 0.500 0.472