Accountancy, asked by babuhimanshulove, 1 year ago

pass solve it's urgent

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Answered by manish2808
1
Total cost of production = 500
Factory cost = 80% of 500 = 400. Balance is office overheads, 100.

Factory overheads are 150% of office overheads, or 150% of 100 = 150.

Prime cost = Material plus Labour = Factory cost minus Factory overheads = 400 - 150 = 250.

Material is 0.25 of Labour. Or labour is x then material is 0.25x.

Here, 0.25x + x = 250 = Prime cost.

x = 250/1.25 = 200.

Material = 0.25 x 200 = 50.
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