Direct material cost ₹45,000 Direct labour cost is 40% of direct material cost Royalties on production ₹4,000 Other direct expenses are 20% of prime cost. Prime cost will be —

CS Executive · Cost and Management Accounting · PYQS · June 2016
Direct material cost ₹45,000 Direct labour cost is 40% of direct material cost Royalties on production ₹4,000 Other direct expenses are 20% of prime cost. Prime cost will be —
(A) ₹78,750
(B) ₹83,750
(C) ₹80,400
(D) None of the above.

Answer & Explanation:

Correct Answer: Option (B)

Official answer key: (B).

Topics: Cost Concepts

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