Question
You are provided with the following information: Budget for year 1 Actual results for year 1 Direct materials costsRs 750,000Rs 725,000 Direct manufacturing labour costsRs
You are provided with the following information:
Budget for year 1 Actual results for year 1
Direct materials costsRs 750,000Rs 725,000
Direct manufacturing labour costsRs 500,000Rs 490,000
Direct manufacturing overhead costsRs 800,000Rs 900,000
During the month of June, the Job-cost record for Job 270 contained the following information:
a) Direct materials used Rs 60,000
b) Direct manufacturing labour costs Rs 40,000
REQUIRED:
1. Compute the actual and budgeted manufacturing overhead rates for year 1 using direct labour cost base
2. Compute the total cost and profit of Job 270 given sales revenue of Rs 250,000 using:
Normal costing
3. At the end of year 1, compute the under or over allocated manufacturing overhead under normal costing.
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