You are given the following information: (i) Total number of workers working in a department: 500 (ii) Working days in a year: 300 (iii) Number of hours worked in a day: 8 (iv) Total departmental overheads: ₹68,400 (v) I

CS Executive · Cost and Management Accounting · PYQS · December 2015
You are given the following information: (i) Total number of workers working in a department: 500 (ii) Working days in a year: 300 (iii) Number of hours worked in a day: 8 (iv) Total departmental overheads: ₹68,400 (v) Idle time @ 5% of days hours to be deducted from total number of days hours. Direct labour hour rate will be —
(A) 7 paise per labour hour
(B) 6 paise per labour hour
(C) 8 paise per labour hour
(D) 9 paise per labour hour.

Answer & Explanation:

Correct Answer: Option (B)

Official answer key: (B).

Topics: Labour Costing

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