Question

SMALL Question 33 Suppose we have to do production for 3 months with 100, 200, 250 units in January, February, march month respectively. The labour cost per unit is 2, 2.5 and 2 Rs in January, February, march month. Find average labour cost incurred per month in manpower budget O 300 O 400 O 500 0 600​

Answer 1

Answer:

Let the number of units produced is x.

Overhead cost =Rs.1600

Material cost =30x

Labor cost =

100

x

2

Total cost =1600+30x+

100

x

2

Divide by x to get average cost.

Average cost =

x

1600

+30+

100

x

Now to minimize differentiate and equate to 0.

0=

x

2

−1600

+

100

1

∴

x

2

1600

=

100

1

∴ x

2

=160000

∴ x=400

Answer 2

SOLUTION

TO CHOOSE THE CORRECT OPTION

Suppose we have to do production for 3 months with 100, 200, 250 units in January, February, march month respectively. The labour cost per unit is 2, 2.5 and 2 Rs in January, February, march month. Find average labour cost incurred per month in manpower budget

• 300

• 400

• 500

• 600

EVALUATION

Here it is given that the needs of production for 3 months with 100, 200, 250 units in January, February, march month respectively.

The labour cost per unit is 2, 2.5 and 2 Rs in January, February, march month.

For the month of January total labour cost

= Rs ( 100 × 2 )

= Rs 200

For the month of February total labour cost

= Rs ( 200 × 2.5 )

= Rs 500

For the month of March total labour cost

= Rs ( 250 × 2 )

= Rs 500

So total labour cost in 3 months

= Rs ( 200 + 500 + 500 )

= Rs 1200

So the required average labour cost incurred per month

$\sf{ =Rs. \: \: \dfrac{1200}{3} }$

$\sf{ =Rs. \: \: 400 }$

FINAL ANSWER

Hence the correct option is 400

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