Cost

OVERHEAD COSTING

1. ABC Ltd. has three production departments P1, P2 and P3 and two service departments S1 and S2. The following data are extracted from the records of the Company for the month of October, 2007:

| |Rs. |

|Rent and rates |62,500 |

|General lighting |7,500 |

|Indirect Wages |18,750 |

|Power |25,000 |

|Depreciation on machinery |50,000 |

|Insurance of machinery |20,000 |

Other Information:

| |P1 |P2 |P3 |S1 |S2 |

|Direct wages (Rs.) |37,500 |25,000 |37,500 |18,750 |6,250 |

|Horse Power of Machines | | | | | |

|used |60 |30 |50 |10 |( |

|Cost of machinery (Rs.) |3,00,000 |4,00,000 |5,00,000 |25,000 |25,000 |

|Floor space (Sq. ft) |2,000 |2,500 |3,000 |2,000 |500 |

|Number of light points |10 |15 |20 |10 |5 |

|Production hours worked | | | | | |

|...