deptt m/c fab asbly paintg strs maint works total basis

I. Labour 33000 22000 11000 7000 44000 32700 0 149700 E-1 (allocation)

I. Mat 2200 1100 3300 3400 0 2800 0 12800 E-1 (allocation)

Rent 45500 38500 30800 22400 15400 7700 7700 168000 area

Depn 22000 11000 5500 2200 1100 1650 550 44000 BV

Rates/taxes 650 550 440 320 220 110 110 2400 area

welfare 9460 4840 2420 1240 880 654 0 19494 2% of labour

power 40000 20000 2000 4000 0 366 2220 68586 allocation & hp

works sal/exp 0 0 0 0 0 0 130260 130260 allocation

misc. store 0 0 0 0 1190 0 0 1190 allocation

total 152810 97990 55460 40560 62790 45980 140840 596430

Re-allocatnDist. Of works 67200 24640 33600 15400 0 0 140840 direct labour hr

Dist of maint 24200 12100 6050 2420 1210 45980 bv of plant & mach

Dist of stores 41776 14488 264 7472 64000 direct & indirect matl

total charge to prodn 285986 149218 95374 65852 596430labour hr actuals 120300 44000 60000 27500OH rate/hr 2.38 3.39 1.59 2.39

Ans 3 & 6

3. Absorbtion of the fixed cost should be done differentlyhence, OH rate/hr should be exclusive of fixed cost 4. Factory area may not be reflective of actual built up area5. All the m/c are equally run and efficiency is constant6. SLM method of depn is used

Ans 1.Star Engineering Company