.

ILLUSTRATION 9 (Reverse Calculation of Factory Overhead and Administrative overheads) In an engineering company, the factory overheads are recovered on a fixed percentage basis on direct wages and the administrative overheads are absorbed on a fixed percentage basis on factory cost. The company has furnished the following data relating to two jobs undertaken by it in a period: Job 101 Job 102 Direct materials Direct wages Selling price Profit percentage on Total Cost 54,000 42,000 1,66,650 10% 37,500 30,000 1,28,250 20% Required: (i) COMPUTATION of percentage recovery rates of factory overheads and administrative overheads