Reference no: EM133139729
Question - The following is the budget of Superb Engineering Works for the year 2020
Factory overheads Kshs 102,000
Direct labour cost Kshs 138,000
Direct labour hours 195,000
Machine hours 90,000
Actual labour hours were 80,000
Actual machine hours were 70,000
Actual direct labour costs were Kshs 90,000
Actual direct material costs were Kshs. 85,000
Required - Determine the overhead application rate on the basis of
a. Direct labour hours
b. Direct labour cost
c. Machine hours
d. Overhead costs
e. Production cost
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