The following information relates to a production department of Cheenu Limited : ₹ Material used 5,00,000 Direct labour 4,00,000 Factory overhead 2,25,000 In an order carried out in the department, direct material amount
CS Executive · Cost and Management Accounting · PYQS · December 2018
The following information relates to a production department of Cheenu Limited : ₹ Material used 5,00,000 Direct labour 4,00,000 Factory overhead 2,25,000 In an order carried out in the department, direct material amounted to ₹60,000 and direct labour amounted to ₹35,000. On the basis of prime cost, amount of the factory overhead chargeable to this order will be :
Answer & Explanation:
Correct Answer: Option (B)
Official answer key: (B).
Topics: Overhead Costing
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