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In a company factory overheads are charged as a fixed percentage on Direct Labour and office overheads on the basis of percentage of factory cost. The following informations are available: Product A Product B Direct materials Rs. 19,000 Rs. 15,000 Director labour Rs. 15,000 Rs. 25,000 Sales Rs. 60,000 Rs. 80,000 Profit 25% on cost 25% on sale price Find out i) The percentage of factory overheads on direct labour ii) The percentage of office overheads on factory cost?
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In a company factory overheads are charged as a fixed percentage on Di...
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i) Percentage of Factory Overheads on Direct Labour
Let the percentage of factory overheads on direct labour be x%.
Total cost of Product A = Direct materials + Direct labour + Factory overheads
Cost of Product A = Rs. 19,000 + Rs. 15,000 + Rs. (15,000 * x%) = Rs. 34,000 + Rs. 150x/100
Total cost of Product B = Direct materials + Direct labour + Factory overheads
Cost of Product B = Rs. 15,000 + Rs. 25,000 + Rs. (25,000 * x%) = Rs. 40,000 + Rs. 250x/100
Given, profit on cost for both products = 25%
Therefore, selling price of Product A = Cost of Product A + 25% of Cost of Product A
Selling price of Product A = Rs. (34,000 + 150x/100) + 25% of (34,000 + 150x/100)
Selling price of Product A = Rs. (34,000 + 150x/100) + Rs. (8,500 + 37.5x/100)
Selling price of Product A = Rs. 42,500 + Rs. 187.5x/100
Similarly, selling price of Product B = Rs. 53,750 + Rs. 312.5x/100
Given, sales of Product A = Rs. 60,000 and sales of Product B = Rs. 80,000
Therefore, (42,500 + 187.5x/100) * Quantity of Product A = Rs. 60,000
Quantity of Product A = 3.2
Similarly, (53,750 + 312.5x/100) * Quantity of Product B = Rs. 80,000
Quantity of Product B = 1.6
Total Direct Labour = Rs. 15,000 + Rs. 25,000 = Rs. 40,000
Total Factory Overheads = Total Cost - Total Direct Materials - Total Direct Labour
Total Factory Overheads = (Rs. 34,000 + Rs. 150x/100) * 3.2 + (Rs. 40,000 + Rs. 250x/100) * 1.6 - Rs. 19,000 - Rs. 15,000
Total Factory Overheads = Rs. (108,800 + 800x)
Given, factory overheads are charged as a fixed percentage on direct labour.
Therefore, (Rs. 108,800 + 800x) / Rs. 40,000 = x/100
x = 240
Hence, the percentage of factory overheads on direct labour is 240%.
ii) Percentage of Office Overheads on Factory Cost
Let the percentage of office overheads on factory cost be y%.
Total factory cost of Product A = Direct materials + Direct labour + Factory overheads
Factory cost of Product A = Rs. 19,000 + Rs. 15,000 + Rs. (15,000 * 240%) = Rs. 34,000 + Rs. 36,000 = Rs. 70,000
Total factory cost of Product B = Direct materials + Direct labour + Factory overheads
Factory cost of Product B
i) Percentage of Factory Overheads on Direct Labour
Let the percentage of factory overheads on direct labour be x%.
Total cost of Product A = Direct materials + Direct labour + Factory overheads
Cost of Product A = Rs. 19,000 + Rs. 15,000 + Rs. (15,000 * x%) = Rs. 34,000 + Rs. 150x/100
Total cost of Product B = Direct materials + Direct labour + Factory overheads
Cost of Product B = Rs. 15,000 + Rs. 25,000 + Rs. (25,000 * x%) = Rs. 40,000 + Rs. 250x/100
Given, profit on cost for both products = 25%
Therefore, selling price of Product A = Cost of Product A + 25% of Cost of Product A
Selling price of Product A = Rs. (34,000 + 150x/100) + 25% of (34,000 + 150x/100)
Selling price of Product A = Rs. (34,000 + 150x/100) + Rs. (8,500 + 37.5x/100)
Selling price of Product A = Rs. 42,500 + Rs. 187.5x/100
Similarly, selling price of Product B = Rs. 53,750 + Rs. 312.5x/100
Given, sales of Product A = Rs. 60,000 and sales of Product B = Rs. 80,000
Therefore, (42,500 + 187.5x/100) * Quantity of Product A = Rs. 60,000
Quantity of Product A = 3.2
Similarly, (53,750 + 312.5x/100) * Quantity of Product B = Rs. 80,000
Quantity of Product B = 1.6
Total Direct Labour = Rs. 15,000 + Rs. 25,000 = Rs. 40,000
Total Factory Overheads = Total Cost - Total Direct Materials - Total Direct Labour
Total Factory Overheads = (Rs. 34,000 + Rs. 150x/100) * 3.2 + (Rs. 40,000 + Rs. 250x/100) * 1.6 - Rs. 19,000 - Rs. 15,000
Total Factory Overheads = Rs. (108,800 + 800x)
Given, factory overheads are charged as a fixed percentage on direct labour.
Therefore, (Rs. 108,800 + 800x) / Rs. 40,000 = x/100
x = 240
Hence, the percentage of factory overheads on direct labour is 240%.
ii) Percentage of Office Overheads on Factory Cost
Let the percentage of office overheads on factory cost be y%.
Total factory cost of Product A = Direct materials + Direct labour + Factory overheads
Factory cost of Product A = Rs. 19,000 + Rs. 15,000 + Rs. (15,000 * 240%) = Rs. 34,000 + Rs. 36,000 = Rs. 70,000
Total factory cost of Product B = Direct materials + Direct labour + Factory overheads
Factory cost of Product B
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In a company factory overheads are charged as a fixed percentage on Direct Labour and office overheads on the basis of percentage of factory cost. The following informations are available: Product A Product B Direct materials Rs. 19,000 Rs. 15,000 Director labour Rs. 15,000 Rs. 25,000 Sales Rs. 60,000 Rs. 80,000 Profit 25% on cost 25% on sale price Find out i) The percentage of factory overheads on direct labour ii) The percentage of office overheads on factory cost?
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In a company factory overheads are charged as a fixed percentage on Direct Labour and office overheads on the basis of percentage of factory cost. The following informations are available: Product A Product B Direct materials Rs. 19,000 Rs. 15,000 Director labour Rs. 15,000 Rs. 25,000 Sales Rs. 60,000 Rs. 80,000 Profit 25% on cost 25% on sale price Find out i) The percentage of factory overheads on direct labour ii) The percentage of office overheads on factory cost? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about In a company factory overheads are charged as a fixed percentage on Direct Labour and office overheads on the basis of percentage of factory cost. The following informations are available: Product A Product B Direct materials Rs. 19,000 Rs. 15,000 Director labour Rs. 15,000 Rs. 25,000 Sales Rs. 60,000 Rs. 80,000 Profit 25% on cost 25% on sale price Find out i) The percentage of factory overheads on direct labour ii) The percentage of office overheads on factory cost? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for In a company factory overheads are charged as a fixed percentage on Direct Labour and office overheads on the basis of percentage of factory cost. The following informations are available: Product A Product B Direct materials Rs. 19,000 Rs. 15,000 Director labour Rs. 15,000 Rs. 25,000 Sales Rs. 60,000 Rs. 80,000 Profit 25% on cost 25% on sale price Find out i) The percentage of factory overheads on direct labour ii) The percentage of office overheads on factory cost?.
In a company factory overheads are charged as a fixed percentage on Direct Labour and office overheads on the basis of percentage of factory cost. The following informations are available: Product A Product B Direct materials Rs. 19,000 Rs. 15,000 Director labour Rs. 15,000 Rs. 25,000 Sales Rs. 60,000 Rs. 80,000 Profit 25% on cost 25% on sale price Find out i) The percentage of factory overheads on direct labour ii) The percentage of office overheads on factory cost? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about In a company factory overheads are charged as a fixed percentage on Direct Labour and office overheads on the basis of percentage of factory cost. The following informations are available: Product A Product B Direct materials Rs. 19,000 Rs. 15,000 Director labour Rs. 15,000 Rs. 25,000 Sales Rs. 60,000 Rs. 80,000 Profit 25% on cost 25% on sale price Find out i) The percentage of factory overheads on direct labour ii) The percentage of office overheads on factory cost? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for In a company factory overheads are charged as a fixed percentage on Direct Labour and office overheads on the basis of percentage of factory cost. The following informations are available: Product A Product B Direct materials Rs. 19,000 Rs. 15,000 Director labour Rs. 15,000 Rs. 25,000 Sales Rs. 60,000 Rs. 80,000 Profit 25% on cost 25% on sale price Find out i) The percentage of factory overheads on direct labour ii) The percentage of office overheads on factory cost?.
Solutions for In a company factory overheads are charged as a fixed percentage on Direct Labour and office overheads on the basis of percentage of factory cost. The following informations are available: Product A Product B Direct materials Rs. 19,000 Rs. 15,000 Director labour Rs. 15,000 Rs. 25,000 Sales Rs. 60,000 Rs. 80,000 Profit 25% on cost 25% on sale price Find out i) The percentage of factory overheads on direct labour ii) The percentage of office overheads on factory cost? in English & in Hindi are available as part of our courses for B Com.
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