Question
1) The accounts of Kool Kool Company Ltd. show for 20X6: Materials Rs 350,000; Labour Rs 270,000; Factory Overheads Rs 81,000 and Administration Overheads Rs
1) The accounts of Kool Kool Company Ltd. show for 20X6: Materials Rs 350,000; Labour Rs 270,000; Factory Overheads Rs 81,000 and Administration Overheads Rs 56,080. What price should the company quote for a refrigerator? It is estimated that Rs 1,000 in material and Rs 700 in labour will be required for one refrigerator. Absorb factory overheads on the basis of labour and administration overheads on the basis of works cost. A profit of 1212 % on selling price is required.
2) The summary as per primary distribution is as follows: Production departments A- `2400; B- `2100 & C- `1500 Service departments X `700; Y- `900 Expenses of service departments are distributed in the ratios of: X dept. : A- 20%, B- 40%, C- 30% and Y- 10% Y dept. : A- 40%, B- 20%, C- 20% and X- 20% Show the distribution of service costs among A, B and C under repeated distribution method and simultaneous method.
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