The following are budgeted overheads, and other information related to a manufacturing entity. Production department 1...

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The following are budgeted overheads, and other information related to a manufacturing entity. Production department 1 Production department 2 4,500,000 5,000 1,000 Manufacturing overheads Direct labour hours Machine hours During the 4th quarter of the year, 5,000 units of products were manufactured and sold. The following information is provided in this respect. Sales (5,000 units) Direct costs Manufacturing overheads Non-manufacturing overheads 6,200,000 1,500 8,000 Rs' 000 6,100 2,050 2,712 990 During the quarter, 1,050 direct labour hours from Production Department 1 and 2,200 machine hours from Production Department 2 were used. Overheads of Production Department 1 and Production Department 2 are absorbed based on direct labour-hours and machine hours, respectively. There was no opening or closing finished goods inventory. Required: i. Calculate over/ under absorption of overheads during the 4th quarter. ii. Prepare an income statement for the 4th quarter, assuming that over/under absorption of overheads is not significant. The following are budgeted overheads, and other information related to a manufacturing entity. Production department 1 Production department 2 4,500,000 5,000 1,000 Manufacturing overheads Direct labour hours Machine hours During the 4th quarter of the year, 5,000 units of products were manufactured and sold. The following information is provided in this respect. Sales (5,000 units) Direct costs Manufacturing overheads Non-manufacturing overheads 6,200,000 1,500 8,000 Rs' 000 6,100 2,050 2,712 990 During the quarter, 1,050 direct labour hours from Production Department 1 and 2,200 machine hours from Production Department 2 were used. Overheads of Production Department 1 and Production Department 2 are absorbed based on direct labour-hours and machine hours, respectively. There was no opening or closing finished goods inventory. Required: i. Calculate over/ under absorption of overheads during the 4th quarter. ii. Prepare an income statement for the 4th quarter, assuming that over/under absorption of overheads is not significant.

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