Direction: Data given below shows the requirement in producing 1 unit of several products. The raw material is given in kg which is required for the production of 1 unit of each product. Unit of labour tells the number of workers used on that product. Overhead shows the price in Rs. required to manufacture one unit of that particular product.

Wage per labour is Rs. 35
Price per kg of raw material is Rs. 25
Find the Cost Price of producing product A.
- AOption (a)
Rs. 373.50
- BOption (b)
Rs. 355.50
- COption (c)
Rs. 318.50
- DOption (d)
Rs. 327.50
- EOption (e)
Rs. 416.50
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Correct answer
Rs. 327.50
Why this answer is correct
Cost of raw material = 6 × 25 = Rs. 150
Cost of labour = 5 × 35 = Rs. 175
Overhead cost = Rs. 2.5
Total cost = Rs. 150 + Rs. 175 + Rs. 2.5 = Rs. 327.50