In an engineering company the factory overheads are recovered on a fixed percentage basis on direct wages and administrative overheads are absorbed on a fixed percentage basis on factory cost.
The company has furnished the following data relating to two jobs undertaken by it in a period:
|
Job 101 Rs. |
Job 102 Rs. |
|
|
Direct material |
54,000 |
37,500 |
|
Direct labour |
42,000 |
30,000 |
|
Selling price |
1,66,650 |
1,28,250 |
|
Percentage profit on total cost |
10% |
20% |
Required:
- Compute the percentage recovery rates of factory overheads and administrative overheads.
- Calculate the amount of factory overheads, administration overhead and profit for each of the two jobs.
- Using the above recovery rates, fix the selling price of Job 103, the additional data being:
Direct materials Rs. 24,000
Direct wages Rs. 20,000