A factory engaged in manufacturing plastic buckets is working at 40% capacity and produces 10,000 buckets per annum. The present cost-break-up for one bucket is as under: Materials ₹10 Labour ₹3 Overheads ₹5 (60% fixed)
CS Executive · Cost and Management Accounting · PYQS · June 2017
A factory engaged in manufacturing plastic buckets is working at 40% capacity and produces 10,000 buckets per annum. The present cost-break-up for one bucket is as under: Materials ₹10 Labour ₹3 Overheads ₹5 (60% fixed) The selling price per bucket ₹20. If factory operates 90% of capacity the profit will be:
Answer & Explanation:
Correct Answer: Option (C)
Official answer key: (C).
Topics: Marginal Costing
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