Calculate the machine hour rate to recover the overhead expenses given below :
Per hour Per annum
Electric Power
75 Ps. Steam 10 Ps.
Water 2Ps.
Repairs Rs. 530
Rent Rs. 270
Running hours
Rs. 2,000
Original cost Rs. 12,500
Book value Rs. 2, 870
Replacement value Rs. 11, 500
Hint : (Depreciation to be charged on original cost.)
See Answer →Define Overheads. What are the various methods of classifying overheads. Discuss functional classification.
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See Answer →i) FIFO and ii) LIFO
January 1 Opening balance 100 units @ Rs. 5 each
January 5 Received 500 units @ Rs. 6 each
January 30 Issued 300 units
February 5 Issued 200 units
February 6 Received 500 units @ Rs. 5 each March 10 Issued 300 units March 12 Issued 250 units
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See Answer →