Question

Fifty units are put in a process at a total cost of Rs. 90.
Wastage is normally 10% without any scrap value. If output
is 40 units the amount of abnormal loss would be
(a) Rs. 80
(C) Rs. 10
(b) Rs. 8
(d) Rs. 9​

Answer 1

Answer:

option c is correct answer

Step-by-step explanation:

5 thanks=10thanks

Answer 2

The amount of abnormal loss would be Rs. 10 and option (C) is correct.

Step-by-step explanation:

Given:

50 units are put in a process at a total cost of Rs. 90.

Wastage is normally 10% without any scrap value.

40 units are the output units.

To Find:

The amount of abnormal loss.

Formula Used:

$Volume\ of\ abnormal\ loss=\frac{(Total\ cost-scrap\ value)}{ Normal\No.\ of\ unit\ produced} \times Abnomal \ loss\ of\ units$---formula no.01.

Solution:

As given-50 units are put in a process at a total cost of Rs. 90.

Total cost = Rs. 90  

As given-wastage is normally 10% without any scrap value.

It means  wastage $= 10\% \ of\ 50 \ units$

                               $= 50\times\frac{10}{100}$

                               $= 5\ units$

Scrap value =0

Total input  in process = 50 units

Less normal loss in units=5 units

Normal no. of  unit produced = 50-5  =45

Actual output of A process = 40 units (as given)

Abnormal loss in units = 45-40 =5 units

Applying the formula no. 01.

$Volume\ of\ abnormal\ loss=\frac{(Total\ cost-scrap\ value)}{ Normal\No.\ of\ unit\ produced} \times Abnomal \ loss\ of\ units$

                                         $=\frac{(90- 0)}{45} \times 5$

                                         $=\frac{90}{45} \times 5$

                                        $=Rs.10$

Thus,the amount of abnormal loss would be Rs. 10 and option (C) is correct.

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