Estimate factory cost of the product if direct material is Rs.60,000; Direct Labour is Rs.40,000 and…
Factory cost includes direct material, direct labour and factory overhead. Factory overhead is 40% of Rs.60,000 = Rs.24,000, so factory cost is Rs.60,000 + Rs.40,000 +…
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Estimate factory cost of the product if direct material is Rs.60,000; Direct Labour is Rs.40,000 and factory overhead 40% of the direct material:
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Correct answer A
Factory cost includes direct material, direct labour and factory overhead. Factory overhead is 40% of Rs.60,000 = Rs.24,000, so factory cost is Rs.60,000 + Rs.40,000 + Rs.24,000 = Rs.1,24,000.
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Kerala SET (LBS Centre)