Raw materials consumed are ₹3,50,000, direct wages are ₹1,20,000, and direct expenses are ₹30,000. Factory overheads are 40% of prime cost. What is the total factory cost?
Answer and explanation
Correct answer: D. ₹7,00,000
- Step 1: Calculate Prime Cost: .
- Step 2: Compute Factory Overheads: .
- Step 3: Compute Total Factory Cost: .
Answer
₹7,00,000.
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