50 units are processed at a cost of Rs 80, normal loss is 10%, each unit carries a scrap value of 25 paise If output is 40 units, the value of abnormal loss will be _________.
A. Rs. 1.25
B. Rs. 8.00
C. Rs. 8.75
D. Rs. 8.88
Answer: Option C
Solution(By Examveda Team)
VALUE OF ABNORMAL LOSS = (Total cost - scrap value)/No of unit produced × Abnormal Issue=(80-(5×.25))/(50-5) × 5
=8.75
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It's right 5×0.25=1.25
50-5=45
80-1.25=78.75/45×5
why
How to solve this problem
how this question is right? 444/- is right
50*80=4000-5*.25=1.25. 4000-1.25=3998.75/4000- 5=3995. 3998.75/3995=1.00093867334so abnormal loss is1.*80*1.00093867334=ans is 800.750938672
50*80=4000-5*.25=1.25. 4000-1.25=3998.75/4000- 5=3995. 3998.75/3995=1.00093867334so abnormal loss is1.*80*1.00093867334=ans is 800.750938672
Answer is not correct. Correct answer will be as follows -
(50×80 - 5×0.25)/45 × 5 = Rs. 444.31
VALUE OF ABNORMAL LOSS = ((50*80)-(5*.25)/(50-5))*5 = 444/-,,,HOW OPTION C IS RIGHT