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Problem 2 : Cost statement, estimated cost and Price The accounts of Steelsways Engineering Co . Ltd show the following for 2 0 1 3

Problem 2: Cost statement, estimated cost and Price
The accounts of Steelsways Engineering Co. Ltd show the following for 2013:
a. Show the works cost and total cost, the percentage that the works
overhead cost bears to the manul and machine labour wages and the
percentage that the establishment and general expenses bear to the
works cost
b. What price should the company quote to manufacture a machine which,
it is estimated, will require an expenditure of Rs 8000 on materials; and
Rs.6000 on wages, so that it will yield a profit of 25% on the total cost or
20% on selling price
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