Razaque steels produces different steel products (product A, product B and product C). The primary raw material is 40-foot long pieces of steel bars. These bars are custom cut and welded along with other material to make finished product. In addition, the final stages of production require grinding and sanding operations, along with a final coating of paint which are classified as indirect material within factory overhead. During April 2020, Razaque steels has produced 1000 units of product A. Standard and actual figures are as follows: STANDARD ACTUAL 6,000 units @ Rs. 4/= 5,000 hours @ Rs. 6/= 9,800 units @ Rs. 4.50/= 6,000 hours @ Rs. 6.50/= Direct Materials Direct Labor Factory overhead 50% of Direct labor 20.000 /=

Razaque steels produces different steel products (product A, product B and product C). The primary raw material is 40-foot long pieces of steel bars. These bars are custom cut and welded along with other material to make finished product. In addition, the final stages of production require grinding and sanding operations, along with a final coating of paint which are classified as indirect material within factory overhead. During April 2020, Razaque steels has produced 1000 units of product A. Standard and actual figures are as follows: STANDARD ACTUAL 6,000 units @ Rs. 4/= 5,000 hours @ Rs. 6/= 9,800 units @ Rs. 4.50/= 6,000 hours @ Rs. 6.50/= Direct Materials Direct Labor Factory overhead 50% of Direct labor 20.000 /=

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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