Costing Problem

Snap short of RTR May-10, Question

1) Labour-Rs. 50 per unit, Monthly capacity 25K unit with existing machinery

company has offer of 300K unit in one year, equily distributed to whole period

and if company use the new machine with production capacity is 30K p.m

what will be labour cost??????

Replies (5)

25000*50 is one month . The whole yr is 1.5 Cr.

new machine 30000*50 is one month. the yearly is 1.8 cr

Assignment for 300K only why he produce 360K during the year and as per RTP Answer is Rs. 41.67

THANKS FOR YURS ANSWER,

But my vw that labour cost will remain same i.e Rs. 50/- per unit, b'coz lobour coat is at per unit insteated off per hour. If it's per hour than the logic of RTP is correct

pls, discuss futher. b'coz logic isnot cleared

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