Question

The manufacturing cost of a refrigerator was Afs 5000 composed of 30% material, 25% labor and 45% factory overhead costs. Due to improved method of manufacture the material cost has decreased by 8% but labor and overhead costs have increased by 4% and 2% respectively. What will now be the cost of production of refrigerator?

Answer 1

Answer:

Now the Cost production of the refrigerator is ₹4900.

Step-by-step explanation:

Material -8%

labor +4%

over head costs +2%

so,

-8+4+4

= -2

so,

remove 2% of 5000.

so,

price = 4900.

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