Superclass Co. Ltd. has three production departments, X, Y and Z, and two service departments, A...

 

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Superclass Co. Ltd. has three production departments, X, Y and Z, and two service departments, A and B. The following estimated figures for a certain period have been made available: Rs. Rent and rates 10,000 1,200 Lighting and electricity Indirect wages Power 3,000 3,000 Depreciation of machinery 20,000 Other expenses and sundries 20,000 The following details are provided by the firm: Total X Y Z 10,000 2,000 2,500 3,000 120 20 30 40 Floor space (sq. mt.) Lighting point (nos.) Direct wages (Rs.) Horsepower of machines 20,000 6,000 4,000 6,000 300 120 60 100 Cost of machinery (Rs.) 1,00,000 24,000 32,000 40,000 Working hours 4,670 3,020 3,050 The expenses of the service departments A and B are to be allocated as follows: X Y Z 20% 30% 40% 40% 20% 30% 10% A 2,000 20 3,000 20 my 10% B 500 10 1,000 2,000 You are required to calculate the overhead abgption rate per hour in respect of the three production departments. What will be the total cost of an article with material cost of Rs. 80 and direct labour cost of Rs. 40 which passes through X, Y and Z for 2, 3 and 4 hours respectively. (ICWA, Inter) Superclass Co. Ltd. has three production departments, X, Y and Z, and two service departments, A and B. The following estimated figures for a certain period have been made available: Rs. Rent and rates 10,000 1,200 Lighting and electricity Indirect wages Power 3,000 3,000 Depreciation of machinery 20,000 Other expenses and sundries 20,000 The following details are provided by the firm: Total X Y Z 10,000 2,000 2,500 3,000 120 20 30 40 Floor space (sq. mt.) Lighting point (nos.) Direct wages (Rs.) Horsepower of machines 20,000 6,000 4,000 6,000 300 120 60 100 Cost of machinery (Rs.) 1,00,000 24,000 32,000 40,000 Working hours 4,670 3,020 3,050 The expenses of the service departments A and B are to be allocated as follows: X Y Z 20% 30% 40% 40% 20% 30% 10% A 2,000 20 3,000 20 my 10% B 500 10 1,000 2,000 You are required to calculate the overhead abgption rate per hour in respect of the three production departments. What will be the total cost of an article with material cost of Rs. 80 and direct labour cost of Rs. 40 which passes through X, Y and Z for 2, 3 and 4 hours respectively. (ICWA, Inter)

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Items 1Rent Rates 2 Lighting and Electricity 3 Indirect wages 4 Power 5 Depreciat... View the full answer