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Ibrahim Corporation has the following estimated costs for the year: Direct Materials                   Rs. 20,000 Factory Rent                       Rs. 10,000 Sales Salaries                     Rs. 50,000 Factory Depreciation           Rs. 5,000 Direct Labor                        Rs. 25,000 Foreman’s Salary                Rs. 20,000        Indirect Material                  Rs. 4,000 Indirect Labor                      Rs. 3,000   Ibrahim Corporation estimates that 25,000 labor-hours will be worked during the year. If FOH rate is applied on the basis of direct labor hours, the overhead rate per hour will be:

Ibrahim Corporation has the following estimated costs for the year: Direct Materials                   Rs. 20,000 Factory Rent                       Rs. 10,000 Sales Salaries                     Rs. 50,000 Factory Depreciation           Rs. 5,000 Direct Labor                        Rs. 25,000 Foreman’s Salary                Rs. 20,000        Indirect Material                  Rs. 4,000 Indirect Labor                      Rs. 3,000   Ibrahim Corporation estimates that 25,000 labor-hours will be worked during the year. If FOH rate is applied on the basis of direct labor hours, the overhead rate per hour will be:

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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  1. Ibrahim Corporation has the following estimated costs for the year:

Direct Materials                   Rs. 20,000

Factory Rent                       Rs. 10,000

Sales Salaries                     Rs. 50,000

Factory Depreciation           Rs. 5,000

Direct Labor                        Rs. 25,000

Foreman’s Salary                Rs. 20,000       

Indirect Material                  Rs. 4,000

Indirect Labor                      Rs. 3,000

 

Ibrahim Corporation estimates that 25,000 labor-hours will be worked during the year. If FOH rate is applied on the basis of direct labor hours, the overhead rate per hour will be:

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