works overhead is charged at 80 on labour and office overhead is taken at 15 on work 616384
In a factory two types of radios are manufactured viz. Orient and Usha models. From the following particulars, prepare a statement showing cost and profit per radio sold. There is no opening or closing stock.
Orient |
Usha |
|
Material |
27,300 |
1,08,680 |
Labour |
15,600 |
62,920 |
Works overhead is charged at 80% on labour and office overhead is taken at 15% on works cost. The selling price of both radios is Rs. 1,000. 78 Orient radios and 286 Usha radios were sold.
(Madras University 2000)