Reference no: EM132738282
Question: The production department of a factory furnishes the following information for the month of March, 2007.
Materials used Rs. 54,000
Direct Wages Rs. 45,000
Overheads Rs. 36,000
Labor hours worked - 36,000
Hours of machine operation - 30,000
For an order executed by the department during the period, the relevant information was as under.
Materials used Rs. 6,00,000
Direct Wages Rs. 3,20,000
Labor hours worked - 3,200
Machine hours worked - 2,400
Calculate the overhead charges chargeable to the job by the following methods,
i. Direct materials cost percentage rate
ii. Labor hour rate and iii. Machine hour rate.
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