In a manufacturing concern there are three production departments namely A, B and C. Their direct wages for a period are respectively ₹75,000, ₹20,000 and ₹30,000. During the same period the overheads of the departments

CS Executive · Cost and Management Accounting · PYQS · December 2017
In a manufacturing concern there are three production departments namely A, B and C. Their direct wages for a period are respectively ₹75,000, ₹20,000 and ₹30,000. During the same period the overheads of the departments are ₹60,000, ₹30,000 and ₹15,000 respectively. For this concern, the Blanket Overhead Rate shall be : (A) 80% (B) 84% (C) 150% (D) 200%
(A) 80%
(B) 84%
(C) 150%
(D) 200%

Answer & Explanation:

Correct Answer: Option (B)

Official answer key: (B).

Topics: Overheads

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