Question

11. From the following details, you are required to calculate the cost of Job No. 111
and find out the price to give a profit of 25% on selling price.
Materials cost at Rs. 3,000
Direct wages
a) Dept. X-80 labour hours @ Rs. 10/hour
b) Dept. Y- 60 labour hours @ Rs. 6/hour
C) Dept Z -40 labour hours @ Rs. 5/hour
Overhead expenses for three departments were estimated as follows:
Variable Overheads :
Dept. X - Rs. 5,000 for 1000 labour hours
Dept. Y - Rs. 6.000 for 3000 labour hours
Dept. Z - Rs. 2,000 for 1000 labour hours
Foxed overheads are estimated at Rs. 10,000 for 5000 normal working hours​

Answer 1

Answer:

From the following details, you are required to calculate the cost of Job No. 111

and find out the price to give a profit of 25% on selling price.

Materials cost at Rs. 3,000

Direct wages

a) Dept. X-80 labour hours @ Rs. 10/hour

b) Dept. Y- 60 labour hours @ Rs. 6/hour

C) Dept Z -40 labour hours @ Rs. 5/hour

Overhead expenses for three departments were estimated as follows:

Variable Overheads :

Dept. X - Rs. 5,000 for 1000 labour hours

Dept. Y - Rs. 6.000 for 3000 labour hours

Dept. Z - Rs. 2,000 for 1000 labour hours

Foxed overheads are estimated at Rs. 10,000 for 5000 normal working hours