Superclass Co. Ltd. has three production departments, X, Y and Z, and two service departments, A and B. The following estimated figures for a certain period have been made available:
The following details are provided by the firm:
The expenses of the service departments A and B are to be allocated as follows:
You are required to calculate the overhead absorption rate per hour in respect of the three production departments. What will be the total cost of an article with material cost of Rs. 80 and direct labour cost of Rs. 40 which passes through X, Y and Z for 2, 3 and 4 hours respectively
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