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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...
< b="" />Calculation of Factory Overheads Percentage on Direct Labour< />
To calculate the percentage of factory overheads on direct labour, we need to divide the total factory overheads by the total direct labour cost and then multiply by 100 to get the percentage.
For Product A:
Factory overheads = Profit + Sales - Direct materials - Direct labour
Factory overheads = 25% * Rs. 15,000 + Rs. 60,000 - Rs. 19,000 - Rs. 15,000
Factory overheads = Rs. 3,750 + Rs. 60,000 - Rs. 19,000 - Rs. 15,000
Factory overheads = Rs. 29,750
Factory overheads percentage on direct labour = (Rs. 29,750 / Rs. 15,000) * 100 = 198.33%
Similarly, calculate the factory overheads percentage on direct labour for Product B.
< b="" />Calculation of Office Overheads Percentage on Factory Cost< />
To calculate the percentage of office overheads on factory cost, we need to divide the total office overheads by the total factory cost and then multiply by 100 to get the percentage.
For Product A:
Factory cost = Direct materials + Direct labour + Factory overheads
Factory cost = Rs. 19,000 + Rs. 15,000 + Rs. 29,750 = Rs. 63,750
Office overheads = Profit + Sales - Factory cost
Office overheads = 25% * Rs. 63,750 + Rs. 60,000 - Rs. 63,750
Office overheads = Rs. 15,937.50 + Rs. 60,000 - Rs. 63,750
Office overheads = Rs. 11,187.50
Office overheads percentage on factory cost = (Rs. 11,187.50 / Rs. 63,750) * 100 = 17.57%
Similarly, calculate the office overheads percentage on factory cost for 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?.
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