Following data are available from the cost records of Aditya & Co. Ltd with respect to Job No. 108.
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Materials |
Rs. 10,000 |
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Wages: |
Department X |
40 hours @ Rs. 10 per hour |
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Department Y |
50 hours @ Rs. 12 per hour |
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Department Z |
60 hours @ Rs. 15 per hour |
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Factory overheads (Variable): |
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Department X |
Rs. 8,000 (estimated) |
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Department Y |
Rs. 10,000 (estimated) |
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Department Z |
Rs. 12,000 (estimated) |
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The estimated direct labour hours during the budget period: |
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Department X |
4,000 hours |
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Department Y |
4,000 hours |
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Department Z |
4,000 hours |
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Fixed overheads: Rs. 20,000 for 20,000 normal working hours.
You are required to calculate the cost of Job No. 108 and calculate the selling price required to earn a profit of 20% on cost.