The following particulars relate to production department of a factory : Material used : ₹20,000 Direct labour : ₹10,000 Overheads : ₹7,500 On an order carried out in the department, material consumed was ₹4,000 and dire

CS Executive · Cost and Management Accounting · PYQS · December 2015
The following particulars relate to production department of a factory : Material used : ₹20,000 Direct labour : ₹10,000 Overheads : ₹7,500 On an order carried out in the department, material consumed was ₹4,000 and direct wages paid amounted to ₹2,000. The amount of overheads chargeable to this order on the basis of prime cost would be —
(A) ₹1,500
(B) ₹1,510
(C) ₹1,700
(D) ₹1,710

Answer & Explanation:

Correct Answer: Option (A)

Official answer key: (A).

Topics: Overhead Costing

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