Question 2

Given below is data relating to Cost Centre 52 for period 9 for BOLE KAJA

Total Overhead for period ₦6,000

Total Direct Labour Hours for period 800

Total Direct Wages ₦1,600

Total Direct Material used ₦3,000

Total Machine Hours 1,200

Total Units Produced 45

Required:

Using the above data compute overhead absorption rates using;

1. Percentage of Direct Material Cost

2. Percentage of Direct Labour Cost
3. Percentage of Prime Cost
4. Rate per machine hour
5. Rate per direct labour hour
6. Rate per unit