The following figures have been extracted from the books of a manufacturing company. All jobs pass through the company’s two departments.
|
Working department (Rs) |
Finishing department (Rs) |
|
|
Materials used |
9,000 |
400 |
|
Direct labour |
4,500 |
1,200 |
|
Factory overheads |
1,800 |
1,200 |
|
Direct labour hours |
14,000 |
6,000 |
|
Machine hours |
12,000 |
1,000 |
The following information relates to Job no. 17.
|
Working department (Rs) |
Finishing department (Rs) |
|
|
Materials used |
120 |
10 |
|
Direct Labour |
65 |
25 |
|
Direct Labour Hours |
265 |
70 |
|
Machine Hours |
255 |
25 |
You are required (a) to enumerate four methods of absorbing factory overheads by jobs showing the rates for each department under the methods quoted and (b) to prepare a statement showing the different cost results for job no. 17 under each of four methods referred to.