PQR Company produces two items that go through two departments, production and packing. Details are as below: Product A Product B Material cost per unit Rs 2 Rs 3 Rs 1 Direct Labour cost per unit Actual Units produced Rs 1.5 50 million 10 million Actual machine hours used 4,000 500 Direct Labour hours 800 100 Data for production and packing department is as follows: Production Department Production Department Expected Manufacturing OH Rs 50,000,000 Rs 25,000,000 Cost Driver Machine Hours Labour Hours Budgeted Cost Driver 5,000 machine hours 1,000 labour hours Calculate total per unit cost of Product A and Product B as well as over and under absorption if Actual Overhead at the end of the period were Rs 65 million.

PQR Company produces two items that go through two departments, production and packing. Details are as below: Product A Product B Material cost per unit Rs 2 Rs 3 Rs 1 Direct Labour cost per unit Actual Units produced Rs 1.5 50 million 10 million Actual machine hours used 4,000 500 Direct Labour hours 800 100 Data for production and packing department is as follows: Production Department Production Department Expected Manufacturing OH Rs 50,000,000 Rs 25,000,000 Cost Driver Machine Hours Labour Hours Budgeted Cost Driver 5,000 machine hours 1,000 labour hours Calculate total per unit cost of Product A and Product B as well as over and under absorption if Actual Overhead at the end of the period were Rs 65 million.

Name: PQR Company produces two items that go through two departments, produ
Uploaded: 2024-03-20T06:32:49.000Z
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Description: PQR Company produces two items that go through two departments, production and packing. Details are asbelow:Product AProduct BMaterial cost per unitDirect Labour cost per unitActual Units producedActual machine hours usedRs 2Rs 3Rs 1Rs 1.550 million

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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