A factory is presently working at 50% capacity and producing 4,000 units. The cost data are as follows: Material and labour cost per unit ₹15, Factory overheads (40% variable) ₹30,000. What will be the works cost for 60%

CS Executive · Cost and Management Accounting · PYQS · June 2019
A factory is presently working at 50% capacity and producing 4,000 units. The cost data are as follows: Material and labour cost per unit ₹15, Factory overheads (40% variable) ₹30,000. What will be the works cost for 60% capacity?
(A) ₹1,04,400
(B) ₹1,12,400
(C) ₹1,18,600
(D) ₹1,22,200

Answer & Explanation:

Correct Answer: Option (A)

Official answer key: (A).

Topics: Flexible Budgeting

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