The cost accounts department of a company has supplied the following data for the supply of 2,000 units of product. Direct materials : 40,000 tons at Rs. 5 per ton. Direct wages: 8,000 labour hours at Rs. 50 per hour Overheads: Variable : Factory Rs. 10 per labour hour Selling Rs. 20 per unit Factory Rs. 1,00,000 Office Rs. 2,00,000 Fixed : Prepare a statement showing the price to be fixed which will fetch a profit of 25% on cost.

The cost accounts department of a company has supplied the following data for the supply of 2,000 units of product. Direct materials : 40,000 tons at Rs. 5 per ton. Direct wages: 8,000 labour hours at Rs. 50 per hour Overheads: Variable : Factory Rs. 10 per labour hour Selling Rs. 20 per unit Factory Rs. 1,00,000 Office Rs. 2,00,000 Fixed : Prepare a statement showing the price to be fixed which will fetch a profit of 25% on cost.

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter12: Differential Analysis And Product Pricing

Section: Chapter Questions

Problem 12.16E: Product cost concept of product pricing Based on the data presented in Exercise 12-15, assume that...

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