- (a) Salman a manufacturer produced 12,000 units and sold 10,000 units. Other information are as...

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- (a) Salman a manufacturer produced 12,000 units and sold 10,000 units. Other information are as under. Y Cost of Material @ Rs. 8 per unit Direct Labour @ Rs. 6 per unit Factory overhead variable Rs. 2 per unit Selling price per unit Rs. 35 Required:- Preparé a portion of income statement under both methods i.e. direct costing and absorption costing. The IQIZ company estimated its factory overheads for the next period at Rs. 160,000. it is estimated that 40,000 units will be produced at a normal cost of Rs. 200,000 production will require 40,000 man hours at an estimated wage cost of Rs. 80,000. the machine will run about 25,000 hours. Required:- The factory overhead rate that may be used in applying FOH to production on each of the following bases: (i) Material cost (ii) Direct Labour Cost (ii) Direct Labour hours (iv) Machine hours - (a) Salman a manufacturer produced 12,000 units and sold 10,000 units. Other information are as under. Y Cost of Material @ Rs. 8 per unit Direct Labour @ Rs. 6 per unit Factory overhead variable Rs. 2 per unit Selling price per unit Rs. 35 Required:- Preparé a portion of income statement under both methods i.e. direct costing and absorption costing. The IQIZ company estimated its factory overheads for the next period at Rs. 160,000. it is estimated that 40,000 units will be produced at a normal cost of Rs. 200,000 production will require 40,000 man hours at an estimated wage cost of Rs. 80,000. the machine will run about 25,000 hours. Required:- The factory overhead rate that may be used in applying FOH to production on each of the following bases: (i) Material cost (ii) Direct Labour Cost (ii) Direct Labour hours (iv) Machine hours - (a) Salman a manufacturer produced 12,000 units and sold 10,000 units. Other information are as under. Y Cost of Material @ Rs. 8 per unit Direct Labour @ Rs. 6 per unit Factory overhead variable Rs. 2 per unit Selling price per unit Rs. 35 Required:- Preparé a portion of income statement under both methods i.e. direct costing and absorption costing. The IQIZ company estimated its factory overheads for the next period at Rs. 160,000. it is estimated that 40,000 units will be produced at a normal cost of Rs. 200,000 production will require 40,000 man hours at an estimated wage cost of Rs. 80,000. the machine will run about 25,000 hours. Required:- The factory overhead rate that may be used in applying FOH to production on each of the following bases: (i) Material cost (ii) Direct Labour Cost (ii) Direct Labour hours (iv) Machine hours - (a) Salman a manufacturer produced 12,000 units and sold 10,000 units. Other information are as under. Y Cost of Material @ Rs. 8 per unit Direct Labour @ Rs. 6 per unit Factory overhead variable Rs. 2 per unit Selling price per unit Rs. 35 Required:- Preparé a portion of income statement under both methods i.e. direct costing and absorption costing. The IQIZ company estimated its factory overheads for the next period at Rs. 160,000. it is estimated that 40,000 units will be produced at a normal cost of Rs. 200,000 production will require 40,000 man hours at an estimated wage cost of Rs. 80,000. the machine will run about 25,000 hours. Required:- The factory overhead rate that may be used in applying FOH to production on each of the following bases: (i) Material cost (ii) Direct Labour Cost (ii) Direct Labour hours (iv) Machine hours

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Answer a Prepare Income Statement under direct costing bCalculation of Factory Overhead rate Amount ... View the full answer