Question
Nikson Ltd provides the following information relating to the activities of a production department for the month of January 2023 Material Used Rs. 72,000 Direct
Nikson Ltd provides the following information relating to the activities of a production department for the month of January 2023 Material Used Rs. 72,000 Direct wages Rs. 60,000 Machine hours20,000 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: Material used Rs. 4,000 Direct Wages Rs. 3,300 Machine hours 1,200 hours Labour hours 1,650 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
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