To produce 1,000 units of a product JK Ltd., spend ₹50,000 on direct material and ₹40,000 on direct labour. Factory overhead was charged at the rate of 10% on prime cost amounted to ₹12,000. The amount of direct expenses

CS Executive · Cost and Management Accounting · PYQS · December 2017
To produce 1,000 units of a product JK Ltd., spend ₹50,000 on direct material and ₹40,000 on direct labour. Factory overhead was charged at the rate of 10% on prime cost amounted to ₹12,000. The amount of direct expenses was: (A) ₹9,000 (B) ₹24,000 (C) ₹30,000 (D) ₹36,000
(A) ₹9,000
(B) ₹24,000
(C) ₹30,000
(D) ₹36,000

Answer & Explanation:

Correct Answer: Option (C)

Official answer key: (C).

Topics: Cost Sheet

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