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Following particulars related to the production department of a factory for the month of June. Material used $80,000 Direct wages $72,000 Direct labour hours worked
Following particulars related to the production department of a factory for the month of June. Material used $80,000 Direct wages $72,000 Direct labour hours worked 20,000 Hours of machine operation 25,000 Overhead charges allocated to the department $90,000 Cost data of a particular work order carried out in the above department during June are given below: Material used $8,000 Direct wages. $6250 Labour hours booked 3300 Machine hour booked 2400 What would be the factory cost of the work order under the following methods of charging overheads. (i) Direct labour cost rate (ii) Machine hour rate (iii) Direct labour hour rate
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