Following are the fi gures that have been extracted from the books of a manufacturing company. All jobs pass through the factory’s two departments.

You are required to:

(a) Enumerate four methods of absorbing factory overheads by jobs, showing the rates of each department under the methods quoted.

(b) Prepare a standard showing the different costs resulting for a Job No. 10 using any of the two methods referred above.

Transcribed Image Text:

Materials used (Rs.) Direct labour (Rs.) Factory overheads (Rs.) Direct labour hours (Hrs) Machine hours (Hrs) Working Finishing Department Department Rs. Rs. 6,000 500 3,000 1,500 1,800 1,200 12,000 5,000 10,000 2,000 The following information relates to Job No. 10: Working Finishing Department Department Materials used (Rs.) 120 10 Direct labour (Rs.) 65 Machine hours (Hrs) 255 Direct labour hours (Hrs) 265 122 25 25 70