A work order for 100 units of a commodity has to pass through four different machines of which
Selling Price
Illustration 2:
machine hour rates are: Machine P - 31.25, Machine Q-32.50, Machine R-33 and Machine S-723
Following expenses have been incurred on the work order - Materials 8,000 and Wages 500.
Machine - P has been engaged for 200 hours. Machine - Q for 160 hours, Machine - R for 240 hours
Machine - S for 132 hours.
After the work order has been completed, materials worth 400 are found to be surplus and are returne
to stores.
Office overhead used to be 40% of works costs, but on account of all-round rise in the cosi
administration, distribution and sale, there has been a 50% rise in the office overhead expenditure.
Moreover, it is known that 10% of production will have to be scrapped as not being upto the specifico
and the sale proceeds of the scrapped output will be only 5% of the cost of sale.
If the manufacturer wants to make a profit of 20% on the total cost of the work order, find out the se
price of a unit of commodity ready for sale.
Answers
Answer:
hsjsisidieA work order for 100 units of a commodity has to pass through four different machines of which
Selling Price
Illustration 2:
machine hour rates are: Machine P - 31.25, Machine Q-32.50, Machine R-33 and Machine S-723
Following expenses have been incurred on the work order - Materials 8,000 and Wages 500.
Machine - P has been engaged for 200 hours. Machine - Q for 160 hours, Machine - R for 240 hours
Machine - S for 132 hours.
After the work order has been completed, materials worth 400 are found to be surplus and are returne
to stores.
to the specifico
and the sale proceeds of the scrapped output will be only 5% of the cost of sale.
If the manufacturer wants to make a profit of 20% on the total cost of the work order, find out the se
price of a unit of commodity ready for sale.
Step-by-step explanation:
order - Materials 8,000 and Wages 500.
Machine - P has been engaged for 200 hours. Machine - Q for 160 hours, Machine - R for 240 hours
Machine - S for 132 hours.
After the work order has been completed, materials worth 400 are found to be surplus and are returne
to stores.
Office overhead used to be 40% of works costs, but on account of all-round rise in the cosi
administration, distribution and sale, there has been a 50% rise in the office overhead expenditure.
Moreover, it is known that 10% of production will have to be scrapped as not being upto the specifico
and the sale proceeds of the scrapped output will be only 5% of the cost of sale.
If the manufacturer wants to make a profit of 20% on the total cost of the work order, find o