The document provides cost details for various departments of Star Engineering Company including labor, materials, rent, depreciation, taxes, power, salaries and other expenses. It then allocates these costs to different production departments and calculates the overhead rate per hour.

1. deptt
I. Labour
I. Mat
Rent
Depn
Rates/taxes
welfare
power
works sal/exp
misc. store
total
m/c
33000
2200
45500
22000
650
9460
40000
0
0
152810
Re-allocatn
Dist. Of works
Dist of maint
Dist of stores
67200
24200
41776
total charge to prodn
labour hr actuals
OH rate/hr
285986
120300
2.38
Ans 1.Star Engineering Company
fab
asbly paintg strs maint works
total
basis
22000 11000 7000 44000 32700
0 149700 E-1 (allocation)
1100 3300 3400
0
2800
0
12800 E-1 (allocation)
38500 30800 22400 15400 7700
7700 168000 area
11000 5500 2200 1100 1650
550
44000 BV
550
440
320
220
110
110
2400 area
4840 2420 1240
880
654
0
19494 2% of labour
20000 2000 4000
0
366
2220
68586 allocation & hp
0
0
0
0
0 130260 130260 allocation
0
0
0
1190
0
0
1190 allocation
97990 55460 40560 62790 45980 140840 596430
24640 33600 15400
0
0
12100 6050 2420 1210 45980
14488
264
7472 64000
140840
149218 95374 65852
44000 60000 27500
3.39
1.59
2.39
Ans 3 & 6
3. Absorbtion of the fixed cost should be done differently
hence, OH rate/hr should be exclusive of fixed cost
4. Factory area may not be reflective of actual built up area
5. All the m/c are equally run and efficiency is constant
6. SLM method of depn is used
direct labour hr
bv of plant & mach
direct & indirect matl
596430