The following details pertain to the production department of a factory. Materials consumed Rs. 60,000 Direct wages Rs. 36,000 Machine hours 18,000 Factory overheads Rs. 54,000 Calculate overhead absorption rate under Direct materials percentage rate and Direct wages percentage rate.
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Explanation:
Labour hour rate refers to the use of people for carrying out a task, whereas machine hour rate refers to the tasks that are carried by the machines.
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