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suprim

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  • November 18, 2014 at 11:48 pm #211144
    mysterysuprim
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    So this is how i did it. Long but easy too understand i will say

    first lets suppose budgeted overhead is x.

    As question suggestion actual expenditure is 2% less than budget
    which will gives us :- actual overhead = x – 2%x

    now, when the overhead cost lower than what we’ve expected, that would certainly means it is good for us so a positive figure for that

    so finally we can work it out this from
    budgeted FOH – actual FOH = 1250
    which again is : x-x-2%x=1250

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