Q No.2

Calculate five different overhead rate for cost center AM on the following budgeted

data:

Labor hours 1400

Total direct labor Rs.3600

Direct material cost Rs.7500

Machine hour 2850

Units produced 535

Total budgeted factory overhead Rs.12900

(b)

A cost unit has been produced in Cost center AM and following details recorded:

Direct material used Rs.16.5

Direct labor Rs.17.5

Direct labor hours 5.5 hour

Machine hour 8.5 hour

Calculate the cost of the above unit using each of the absorption bases calculated in (a)