deptt

I. Labour
I. Mat
Rent
Depn
Rates/taxes
welfare
power
works sal/exp
misc. store
total

m/c
33000
2200
45500
22000
650
9460
40000
0
0
152810

Re-allocatn
Dist. Of works
Dist of maint
Dist of stores

67200
24200
41776

total charge to prodn

labour hr actuals
OH rate/hr

285986
120300
2.38

Ans 1.Star Engineering Company

fab
asbly paintg strs maint works
total
basis
22000 11000 7000 44000 32700
0 149700 E-1 (allocation)
1100 3300 3400
0
2800
0
12800 E-1 (allocation)
38500 30800 22400 15400 7700
7700 168000 area
11000 5500 2200 1100 1650
550
44000 BV
550
440
320
220
110
110
2400 area
4840 2420 1240
880
654
0
19494 2% of labour
20000 2000 4000
0
366
2220
68586 allocation & hp
0
0
0
0
0 130260 130260 allocation
0
0
0
1190
0
0
1190 allocation
97990 55460 40560 62790 45980 140840 596430

24640 33600 15400

0
0
12100 6050 2420 1210 45980
14488
264
7472 64000

140840

149218 95374 65852

44000 60000 27500
3.39
1.59
2.39

Ans 3 & 6

3. Absorbtion of the fixed cost should be done differently

hence, OH rate/hr should be exclusive of fixed cost
4. Factory area may not be reflective of actual built up area
5. All the m/c are equally run and efficiency is constant
6. SLM method of depn is used

direct labour hr
bv of plant & mach
direct & indirect matl

596430