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Hello, while using the BPP revision kit, there was a certain question I didn’t quite understand. MCQ BANK 1
MN manufactures automated industrial trolleys, known as TRLs. Each TRL sells for $2000 and the material cost per unit is $800. There is no limit to sales demand. Costs next year will be $264,000 for factory labour, $834,000 for production overheads, and $265,000 for marketing and administrative costs.
In the answers, when calculating costs per factory hour, they added up $264,000 and $834,000 but left out $265,000. Is there a particular reason for this?
Yes – we are only concerned with factory costs (and factory costs are costs within the factory – i.e. costs of producing).
Hello there!
Sir in which question how we do the adjustment of Idle time and get the units of X?
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