Question
A factory has direct material cost of ₹2,40,000 and
direct labour of ₹1,60,000 for a batch of 1,000 units. Factory overheads are absorbed at 75% of direct labour. Admin overhead is charged at 20% of factory cost. Selling & distribution overheads are ₹30 per unit. What is the total cost per unit?Solution
Factory cost = DM + DL + Factory OH = ₹2.4L + ₹1.6L + (1.6L × 75%) = ₹2.4L + ₹1.6L + ₹1.2L = ₹5.2L Admin OH = 20% of ₹5.2L = ₹1.04L Selling OH = 30 × 1,000 = ₹30,000 Total cost = ₹5.2L + ₹1.04L + ₹0.3L = ₹6.54L → per unit = ₹654
On 1st Jan, X Ltd. purchased 1,000 debentures of ₹100 each in Y Ltd. at ₹105 cum-interest. Interest is payable on 30th June and 31st Dec @12% p.a. O...
A cost that has already been incurred and cannot be recovered is known as a:
A company issued ₹10 lakh equity, redeemed ₹5 lakh debentures, paid dividend ₹2 lakh. Received interest ₹1 lakh. What is net cash from financing?
If Indian banks are unable to meet the Priority Sector Lending (PSL) sub-target of 18% for the agricultural sector, with whom are they required to repor...
During the year 2016-17, the profit of the business before charging manager's commission was Rs. 1,89,000. If the manager's commission is 5% after charg...
Sales = ₹200 lakhs, Variable cost = ₹120 lakhs, Fixed cost = ₹30 lakhs
Interest = ₹10 lakhs
Calculate (i) Operating Leverage and (...
Which risk disclosures are mandatorily required for financial instruments?
If Selling Price is 9 per unit, variable cost is 5 per unit and fixed cost is 100000, what is the Margin of safety in Qty if the budgeted units are 1,00...
Which of the following is shown under investing activities in the cash flow statement ?
A long contract requires that the investor
