The total direct labour cost and the direct expenses incurred in the production of a centrifugal pump is Rs.500/- and Rs.60/- respectively. The average prime cost of the pump is calculated as Rs.800. Calculate the direct material cost (in Rs.).

The total direct labour cost and the direct expenses incurred in the production of a centrifugal pump is Rs.500/- and Rs.60/- respectively. The average prime cost of the pump is calculated as Rs.800. Calculate the direct material cost (in Rs.). Correct Answer 240

Given, Prime cost = Rs.800/- = Rs.500/- Direct expenses = Rs.60/- Direct material cost = ? We know that, Prime cost or total direct cost = Direct material cost + Direct labour cost + Direct expenses Rs.800 = DMC + Rs.500/- + Rs.60/- DMC = 800 – 500 – 60 = Rs.240/-
Bissoy MCQ

Related Questions

Which of the following mathematical expression is/are not correct? i) Prime cost = Direct material cost + Direct labour cost + Direct expenses ii) Factory cost = Prime cost + Factory expenses iii) Office cost = Factory cost – Administrative expenses
Expenses incurred during production other than direct materials and direct labour are called . . . . . . . . factory expenses; those charged to production on estimated basis are called . . . . . . . .
The short-run production function for a firm is as follows
Q = -L3 + 15L2 + 10L
Where Q denotes total output in physical units and L denotes units of labour which are homogeneous, but are not perfectly divisible and change in labour does not tend to become zero.
Statement I In this production function, the marginal product of 5th unit of labour is 85.
Statement II Similarly, in this production function, the average product of the 5th unit of labour is 60.
If the labour cost 20% of the cost of production and raw material cost 10% of the cost of production and the price on which article is sold is 20% above the cost of production. If the price of labour is increased by 40% and the price of raw material increased by 20% and rest other expenditure of cost remain constant. The industrythus decide to increase the selling price by 10%. Find the new profit percent ?
Consider the data below and answer the questions based on it.
Factory Expenses = Rs. 30000
Administrative Expenses = Rs. 20000
Labour Cost = Rs. 25000
Materials = Rs. 35000
Selling Expenses = Rs. 10000
Ascertain the prime cost with the help of the given cost data.
If budgeted direct labour hours are 4550 and direct labour cost rate is $600 per labour hour then, total direct labour cost would be
Which of the following statements are true/false?
1. Demands for goods is directly proportional to the labour market.
2. Marginal productivity is the addition made to the total production by subtracting one worker from the existing labour force.
3. Demand for labour is dependent on the elasticity of demand for product produced by the labour.
4. At higher wages, the demand for labour will be higher.
Which of the following statements are true/false?
1. The International Labour Office is the permanent secretariat of the ILO.
2. Convention 182 regarding worst forms of Child Labour has been ratified by India.
3. International Labour Conference is also known as an international Parliament of labour.
4. International Labour Conference is a forum for discussion of key social and labour questions.
5. Trade Unions are involved in collecting wage data including fringe and personal benefits.
6. Strikes, boycotts and gheraos are militant functions of trade union.
7. Ministrant functions of trade unions involve providing financial support to members during strikes and lockouts.
When labour is plotted on X-axis and capital is plotted on Y-axis and an isoquant is prepared, then which of the following statement(s) is/arefalse?
1. Marginal rate of technical substitution of labour for capital is equal to the slope of the iso-quant.
2. Marginal rate of technical substitution of labour for capital is equal to change in the units of capital divided by the change in the units of labour.
3. Marginal rate of technical substitution of labour for capital is the ratio of marginal productivity of capital to marginal productivity of labour.
Which of the following statements are not true in relation to employment of contract labour in any establishment?
1. Supreme Court can abolish contract labour system in any establishment.
2. High Court can abolish contract labour and prohibit the principal employer from engaging contract labour where the government has not abolished the same.
3. An appropriate government and not the court can prohibit the employment of contract labour as per the provisions of law.
4. Neither the court nor the appropriate government can abolish the contract labour in any establishment.