The cost accountant of Nono Chemicals Ltd determined the overhead-recovery rate for the year 2009 (based on
Fantastic news! We've Found the answer you've been seeking!
Question:
The cost accountant of Nono Chemicals Ltd determined the overhead-recovery rate for the year 2009 (based on direct-labour hours) with the following estimates:
|
| Rs. |
| Indirect labour | 1,15,000 |
| Inspection | 70,000 |
| Factory supervision | 50,000 |
| Depreciation & Maintenance | 1,25,000 |
|
| 3,60,000 |
| Direct labour hours | 75,000 hours |
| Hourly wage rate | Rs. 15 |
The actual results for the years are:
|
| |
| Indirect labour | 99,000 |
| Inspection | 73,000 |
| Factory supervision | 51,000 |
| Depreciation & Maintenance | 1,15,000 |
|
| 3,38,000 |
| Direct labour hours | 67,600 |
| Hourly wage rate | Rs. 16 |
Calculate the predetermined overhead recovery rate and find out the amount of under- or over-absorption, if any.
Expert Answer:
Related Book For 
Statistics Data Analysis And Decision Modeling
ISBN: 9780132744287
5th Edition
Authors: James R. Evans
Posted Date:
