Modern Machines Ltd. have three Production Departments (A, B and C) and two Service Departments (D and
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Modern Machines Ltd. have three Production Departments (A, B and C) and two Service Departments (D and E). From the following figures extracted from the records of the company, calculate the overhead rate per labour hour:
The expenses of Service Department D and E are to be apportioned as follows:
Transcribed Image Text:
Indirect materials Indirect wages Depreciation on machinery Depreciation on building Rent, rates and taxes Electric power for machinery Electric power for lighting General expenses Total Items Direct materials Direct wages Value of machinery Floor area (sq. ft) Horse power of machines No. of light points Labour hours Total 60,000 40,000 2,50,000 50,000 150 50 15,000 A 20,000 15,000 60,000 15,000 50 15 5,000 Rs. 15,000 10,000 25,000 5,000 10,000 15,000 500 15,000 95,500 B 10,000 15,000 1,00,000 10,000 60 10 5,000 C 19,000 4,000 40,000 10,000 30 10 2,000 D 6,000 2,000 25,000 5,000 5 5 1,000 E 5,000 4,000 25,000 10,000 5 10 2,000
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