Nikson Ltd provides the following information relating to the activities of a production
department for the month of January 2073
Material Used Rs. 72,000
Direct wages Rs. 60,000
Machine hours 20,000 hours
Labour hours 24,000 hours
Overhead chargeable to the department Rs. 48,000
The relevant data for carrying out one order in the month of February is given below.
Rs. 4,000
Rs. 3,300
1,200 hours
1,650 hours
Material used
Direct Wages
Machine hours
Labour hours
Using the rates of the month of January, prepare a comprehensive statement of cost for this
order by using the following absorption of overheads
1) Direct labour hours
2) Percentage of direct wages
3) Machine hour rate