Question

the cost of a unit is made up of $6.25 material cost, $4.75 labour cost, and $3.25 overhead . what is the ratio that exists between the three elements of cost?

Answer 1

Answer:

Total cost = Material +Labour +Overhead

6.25+4.75+3.25 = 14.25

Ratio of 3 elements of cost :

Material (6.25÷14.25)×100 = 43.86

Labour (4.75 ÷ 14.25)×100 = 33.33

Overhead (3.25÷14.25) × 100 = 22.81