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PQR Company produces two items that go through two departments, production and packing. Details are as below: Material cost per unit Direct Labour cost
PQR Company produces two items that go through two departments, production and packing. Details are as below: Material cost per unit Direct Labour cost per unit Actual Units produced Actual machine hours used Product A Product B Rs 2 Rs 3 Rs 1 Rs 1.5 50 million 10 million 4,000 800 500 100 Data for production and packing department is as follows: Expected Manufacturing OH Cost Driver Budgeted Cost Driver Production Department Rs 50,000,000 Machine Hours 5,000 machine hours Production Department Rs 25,000,000 Labour Hours 1,000 labour hours Calculate total per unit cost of Product A and Product B as well as over and under absorption if Actual Overheads at the end of the period were Rs 65 million.
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