Railways Technical Ability Production Engineering and Planning Question Bank Production Planning

  • question_answer The factory overhead rate is 125% and direct labour cost for a job is Rs. 900. What is the factor overhead charge?

    A) Rs. 360             

    B) Rs. 720

    C) Rs.1125            

    D) Rs. 2250

    Correct Answer: C

    Solution :

    Direct labour cost = Rs. 900/- Factory overhead rate = 125% Factory overhead charge \[=\frac{125}{100}\times 900=\] Rs.1125/-         

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