Q9 A plant utilizes work costing. The following information are acquired from its books for the year finished 31st

December, 2013.

Direct materials 90,000 Selling and dist. overheads 52,500

Direct wages 75,000 Organization overheads 42,000

Plant overheads 45,000 Benefit 60,900

(a) Set up an Expense Sheet demonstrating the prime cost, Works cost. Creation cost, Cost of deals and

the Business esteem.

(b) In 2014, the processing plant got a request for various positions. It is assessed that immediate materials

required will be ' 1,20,000 and direct work will cost ' 75,000. What ought to be the cost for these positions

on the off chance that manufacturing plant means to procure similar pace of benefit on deals accepting that the selling and appropriation

overheads have increased by 15% ? The plant recuperates processing plant overheads as a level of direct

wages and organization, selling and dissemination overheads as a level of works cost, in view of

cost rates winning in the earlier year.