Question

A factory owner employed 50 workers during the month of November,
whose detailed expenditure is given below :
(i) Material cost = Rs. 30,000
(ii) Rate of wage for each worker = Rs. 6 per hour
(iii) Duration of work = 8 hours per day
(iv) No. of holidays in the month = 5
(v) Total overhead expenses = Rs. 15,000
If the workers were paid over time of 400 hours at the rate of Rs. 12 per
hour, calculate
(a) Total cost, and
(b) Man hour rate of overheads

Answer 1

Answer:

TC= 30000+(6*50*8*30)-(6*50*8*5)+15000+(400*12)