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Direct material Rs 25 000 and wages Rs 15 000 and...

This question belongs to Commerce Costing
Costing
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Direct material Rs 25,000 and wages Rs 15,000 and direct expenses Rs 5,000 What would be the factory cost if factory overhead rate is 20%.

Answer & Solution
Correct Answer: Option C
Calculation of factory cost = (Direct material + Wages + Direct expenses) + Factory overhead rate
= (25000 + 15000 + 5000) + 20%
= 45000 + (20/100 × 45000)
= 45000 + 9000 = Rs. 54000.
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CHANDU BATHINI
CHANDU BATHINI 9 years ago
50000 ans
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