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You are provided with the following


Budget for year 1 Actual results for year 1

Direct materials costs                                      Rs 750,000              Rs 725,000

Direct manufacturing labour costs                   Rs 500,000              Rs 490,000

Direct manufacturing overhead costs              Rs 800,000              Rs 900,000

During the month of June, the Job-cost record for Job 270 contained the following information:

a) Direct materials used                       Rs 60,000

b) Direct manufacturing labour costs Rs 40,000



1. Compute the actual and budgeted manufacturing overhead rates for year 1 using direct labour cost base           

2. Compute the total cost and profit of Job 270 given sales revenue of Rs 250,000 using:              

Normal costing                                                                                              

3. At the end of year 1, compute the under or over allocated manufacturing overhead under normal costing. 

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