In the producing a certain article, the cost of over heads labour and materials is are in the ratio 2:7:5 if the cost of labour in producing an article is 28$ find (a) the total cost of producing an article (b) the cost of materials for each article
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a) let's assign 2:7:5 as 2x:7x:5x
cost of labor= 7x = $28
so, x = 28/7 = $4
cost of overhead = 2 X 4 $8
cost of materials = 5 X 4 = $20
so, the total cost of making an article is $56.
b) the total cost of materials for each article is $20
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