Question

Calculate factory cost from the
following information:
Prime cost Rs. 1,75,600
Indirect material Rs. 19,000
Factory rent Rs.45,000
Administrative overhead Rs. 17,300
Power and fuel 13,200​

Answer 1

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Answer 2

The factory cost is Rs. 270100

Factory cost is the total sum of cost needed to manufacture any product. Which in this question is the sum of prime cost, indirect material, factory rent, administrative overhead, power and fuel.

Given,

prime cost = 175600

indirect material = 19000

factory rent = 45000

administrative overhead = 17300

power and fuel = 13200

Factory cost = indirect material + power and fuel + administrative overhead + rent + prime cost .

$Factory cost = 19000 + 17300 + 13200 + 45000 +175600 = 270100$

Therefore, the factory cost is 270100.