Factory overheads are absorbed on labour hours basis and rates are Rs 7per hour for Department A
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Question:
Factory overheads are absorbed on labour hours basis and rates are Rs 7per hour for Department A and Rs 4 per hour for Department B. The firm uses a cost plus system for selling prices and expects a 25%gross profit (sales value min us factory cost). Administrative overheads are absorbed at 10% selling price. Assuming that 1000 were units produced in Batch A-100. Calculate the selling prices per units.
Expert Answer:
1 Factory Overheads Absorption Department A Rs 7 per labor hour Department B Rs 4 per labor hour Lab... View the full answer
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