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
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started