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total manufacturing overhead is 1644000...how it is calculated with proper explaination? total manufacturing overhead estimated= 1664000..how it is calculated?? ata regarding the two boards are
total manufacturing overhead is 1644000...how it is calculated with proper explaination?
total manufacturing overhead estimated= 1664000..how it is calculated??
ata regarding the two boards are as follows: two models: the small board and quires Rs. 3,750 in direct materials per unit, whereas the small board requires mpany pays an average direct labour rate of Rs.650 per hour. The company has direct labour hours as the activity base for applying overheads to the board. verhead is estimated to be Rs.8,32,00,000 per year. The big board is more facture than the small board because it requires more machine time. e company's controller is considering the use of Activity based costing to apply the surfboard requires such different amount of machining. Q1. Surfs Up manufactures surfboards. The company produces two models: the small board and the big board. Data regarding the two boards are as follows: The big board requires Rs. 3,750 in direct materials per unit, whereas the small board requires Rs.2000. The company pays an average direct labour rate of Rs. 650 per hour. The company has historically used direct labour hours as the activity base for applying overheads to the board. Manufacturing Overhead is estimated to be Rs.8,32,00,000 per year. The big board is more complex to manufacture than the small board because it requires more machine time. Mr. Upadhyay, the company's controller is considering the use of Activity based costing to applyStep by Step Solution
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