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    Question

    Direct Material 600 Direct Labour 150 Set

    Up Cost 200 Production overheads and selling and distribution overheads are 20% and 10 %  respectively of the labor cost. You need to determine the cost of production:
    A 950 Correct Answer Incorrect Answer
    B 980 Correct Answer Incorrect Answer
    C 1040 Correct Answer Incorrect Answer
    D 1060 Correct Answer Incorrect Answer
    E 1100 Correct Answer Incorrect Answer

    Solution

    Prime Cost + Factory Overheads = 600+150+200+30 [150*20%] =980

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