Question

Cost of 75 units introduced-Rs. 1308,
Additional expenses incurred-Rs. 202,
Normal loss- 15 units, Actual output-70
units and scrap value-Rs.4/ unit. Calculate
value of abnormal gain.
Options
01510
0 1450
0 241 67
O 251.67​

Answer 1

Answer:

241.67

Explanation:

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Answer 2

The value of abnormal gain is Rs. 241.67.

Given,

Cost of 75 units= Rs. 1308

Additional expenses incurred= Rs. 202

Normal loss= 15 units

Actual output= 70 units

Scrap value= Rs.4 per unit

To Find,

Calculate the value of abnormal gain.

Solution,

Let us find the value of cost of Normal Output

= Cost + additional Expenses incurred - (Scrap Value of Normal Loss)

= Rs. [1308 + 202 - (4*15)] = Rs. 1450

We know that, Normal Output= Expected Output - Normal Loss unit

= 75 - 15 = 60 units.

Abnormal Loss unit= Actual Output - Normal Output

= 70 - 60= 10 units

Now, the value of Abnormal Gain= (Normal Cost of Normal Output/ Normal Output)* Abnormal Gain Units

$= \frac{1450}{60} * 10$ = Rs. 241.67

Hence, the value of abnormal gain is Rs. 241.67.

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