Question

Direct labour cost rs. 18000 which is 180% of factory overhead. The amount of factory overhead is

Answer 1

Direct labour cost = Rs. 18000

According to question,

It is 180% of factory overhead.

So, factory overhead = 18000/180%

= 18000*100/18

Factory overhead = Rs. 10000

Answer 2

Factory overhead = 10,000

Explanation:

Given:

Direct labour cost = 18,000

Direct labour cost =  180% of factory overhead

Factory overhead = ?

Computation of factory overhead:

Factory overhead = Direct labour cost / 180%

Factory overhead = (18,000 ×  100) / 180

Factory overhead = (18,00,000) / 180

Factory overhead = 10,000

Therefore, factory overhead is 10,000.

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