Rahul and Rohit have acquired an automobile service station for a price Rs. 1300 lakhs. The monthly operating cost on average is Rs. 50 lakhs which includes salary for the workers, rent for the building, and other expenses. The owners expect a minimum return of 1% per month for their investment.
On average 100 vehicles are serviced per day including Saturday and Sunday. However, the vehicles are of different types and cost. Total servicing hours per month is 9000 hours. The firm has an option of using Units or Servicing Hour Rate as a basis of allocating the total cost to vehicles.
Suppose if the firm service two vehicles – one high end vehicle and another economy vehicle. The firm has spent 6 hours to service high end vehicle and 2 hours for economy vehicle
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1500000 is answer ok ok ok ok
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