Following information relates to the production department of a factory : Materials used : ₹80,000 Direct labour : ₹60,000 Overheads : ₹40,000 On an order carried out in the department, materials consumed amounted to ₹16

CS Executive · Cost and Management Accounting · PYQS · December 2016
Following information relates to the production department of a factory : Materials used : ₹80,000 Direct labour : ₹60,000 Overheads : ₹40,000 On an order carried out in the department, materials consumed amounted to ₹16,000. The overheads chargeable to this order on the basis of direct materials will be —
(A) ₹8,000
(B) ₹9,000
(C) ₹8,500
(D) ₹9,800

Answer & Explanation:

Correct Answer: Option (A)

Official answer key: (A).

Topics: Cost Accounting

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