Work out factory overhead absorption rate

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Reference no: EM13256508

The textile Products Ltd., has provided the following information about factory overhead costs and prodcuction level for the year 1988.

Normal Capacity 40,000units of product

Expected Actual Capacity 350,000 units of product

Fixed Expense: Rs.7,00,000

Variable expenses: Rs.2,00 per unit

Work out factory overhead absorption rate for both normal as well as expected actual capacity.

Reference no: EM13256508

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