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Billy & Co. is manufacturing pumps which pass through three departmentsFoundry, Machine shop and Assembling. The manufacturing expenses are as follows: Foundry Machine shop Assembling

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Billy & Co. is manufacturing pumps which pass through three departmentsFoundry, Machine shop and Assembling. The manufacturing expenses are as follows: Foundry Machine shop Assembling Total $ $ $ $ Direct wages 10,000 50,000 10,000 70,000 Works overheads 5,000 90,000 10,000 1,05,000 The factory cost of manufacturing 'X' type of pump is prepared by the company as follows: $ $ Material 16 Direct wages- Foundry 2 Machine shop 4 Assembling 8 Works overheads (150% of direct wages) 12 Total cost 2 36 It seems that there is some fallacy. Try to correct it

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