Following information is given for an order : Materials (direct): ₹25,000 Wages (direct): ₹20,000 Factory overheads: 75% of wages (direct) Sales: ₹85,800 Profit: 10% on cost of production Office overheads are charged as

CS Executive · Cost and Management Accounting · PYQS · June 2016
Following information is given for an order : Materials (direct): ₹25,000 Wages (direct): ₹20,000 Factory overheads: 75% of wages (direct) Sales: ₹85,800 Profit: 10% on cost of production Office overheads are charged as a percentage of factory cost. The amount of office overheads and its percentage to factory cost will be —
(A) ₹78,000 and 30%
(B) ₹18,000 and 30%
(C) ₹25,800 and 43%
(D) ₹33,000 and 55%.

Answer & Explanation:

Correct Answer: Option (B)

Official answer key: (B).

Topics: Overhead Costing

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