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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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