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.