modern machines ltd has three production departments a b and c and two service depar 559056

Modern Machines Ltd. has three production departments (A, B and C) and two service departments (D and E). From the following figures extracted from the records of the company, calculate the overhead rate per labour hour:

Rs

Indirect materials

15,000

Indirect wages

10,000

Depreciation on machinery

25,000

Depreciation on buildings

5,000

Rent, rates and taxes

10,000

Electric power for machinery

15,000

Electric power for lighting

500

General expenses

15,000

95,500

Items

Total

A

B

C

D

E

Direct materials (Rs)

60,000

20,000

10,000

19,000

6,000

5,000

Direct wages (Rs)

40,000

15,000

15,000

4,000

2,000

4,000

Value of machinery (Rs)

2,50,000

60,000

1,00,000

40,000

25,000

25,000

Floor area (square feet)

50,000

15,000

10,000

10,000

5,000

10,000

HP of machines

150

50

60

30

5

5

Number of light points

50

15

10

10

5

10

Labour hours

15,000

5,000

5,000

2,000

1,000

2,000

The expenses of service departments D and E are to be apportioned as follows:

A

B

C

D

E

D

40%

20%

30%

10%

E

30%

30%

40%

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