Question

Direct Wages 2,05,000 and Factory Cost 5,60,000. If the ratio of direct wages and factory

overhead is 5 : 3 then Direct Material Cost will be
(A) 2,32,000
(B) 3,50,000
(C) 3,41,667
(D) 2,24,000​

Answer 1

Answer:

3,50,000

Explanation:

hi this is the answer for the above question

Answer 2

Answer:

A). 2,32,000

Explanation:

Given,

Direct wages = 2,05,000

Factory cost/manufacturing cost = 5,60,000

and direct wages:factory overhead=5 :3

Solution :- we know that,

Manufacturing cost = Direct wages + factory overhead + direct material

and factory overhead = 2,05,000 ×3 ÷ 5

                                    = 1,23,000

So, direct material cost = manufacturing cost - (direct wages + factory overhead)

                                      = 5,60,000 - (2,05,000 +1,23,000)

                                       = 2,32,000