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BAbsorption rates and Ascertainment V) Upru
CasFrom the dugeted figures of Mysore Soap factory:
(a) Compute normal overhead application rates using
(i) Direct labour hour rate method
(ii) Direct labour cost method
(iii) Machine hour rate method
Budgeted figures for the year:
Estimated factory overheads
Rs. 58,000
Estimated factory labour hours
1,34,600
Estimated direct labour cost
Rs. 97,800
Estimated machine hours
50,500
(b) Prepare a comparative statement of cost showing the re
application of each of the above rates to Batch No. 243 from the date
below
Direct materials consumed
Rs. 42
Direct labour
Rs. 45
Direct labour hours
Machine hours
20
showing the result of the
30
Darina
al
2006
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