Question

a company estimates its direct material requirements for the month of november2014 to e rs 240000 and the direct labour to be RS 150000. it is the policy of the company to absorb overheads as under: factory overheads 60% of direct wages administrative overheads 20% of work cost selling and distribution 25% of work cost it is estimated that the selling and distribution overheads will increase by 15 in november 2014. the company sells goods at a profit of 16.67% on sales. (a) 921600 (b) 856800 (c) 909900 (d) 687150

Answer 1

Option B : Rs. 8,56,800

Explanation:

(240000+150000+90000+96000+138000+142800)