RST company produces a single product M which passes through three production departments: manufacturing, grinding and finishing. Following details are given : | Direct Wages (₹) | Factory Overheads (₹) Manufacturing Dep

CS Executive · Cost and Management Accounting · PYQS · December 2020
RST company produces a single product M which passes through three production departments: manufacturing, grinding and finishing. Following details are given : | Direct Wages (₹) | Factory Overheads (₹) Manufacturing Dept. | 1,00,000 | 60,000 Grinding Dept. | 4,00,000 | 6,00,000 Finishing Dept. | 60,000 | 68,000 The blanket overhead rate (based upon direct wages) would be :
(A) 60%
(B) 150%
(C) 113.33%
(D) 130%

Answer & Explanation:

Correct Answer: Option (D)

Official answer key: (D).

Topics: Overheads

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