Amaze Ltd. manufactures ring binders which are embossed with customer's own logo. A customer has ordered a batch of 500 binders. The following information gives the cost for a typical batch of 100 binders: Direct materia
CS Executive · Cost and Management Accounting · PYQS · June 2015
Amaze Ltd. manufactures ring binders which are embossed with customer's own logo. A customer has ordered a batch of 500 binders. The following information gives the cost for a typical batch of 100 binders: Direct material: ₹50 Direct labour: ₹20 Machine set-up: ₹5 Design and art work: ₹15 Prime cost: ₹90 Direct employees are paid on piece work basis. Amaze Ltd. absorbs production overheads @ 10% of direct wages. 5% is added to the total production cost of each batch to allow for selling and distribution expenses. Profit margin is 20% of sales value. Selling price of 500 binders will be —
Answer & Explanation:
Correct Answer: Option (C)
Official answer key: (C).
Topics: Cost Sheet and Profit Calculation
Related Questions in this Topic
- 100. .......... method of cost is adopted when by-products are utilised by the factory itself as input for some other pr...
- 99. A factory is currently working at 50% of its capacity. At this level the variable, semi-variable and fixed expenses ...
- 98. To which of the following companies, the requirement of Cost Audit is not applicable even if they are covered under ...
- 97. The most suitable method for calculating the issue price of slow-moving material is:
- 96. Differences in stock of material due to .......... are written off to Profit and Loss Account and do not form part o...