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Question: The accounts of Steelsways Engineering Co. Ltd show the following for 2013: Materials used 180000
Manual and machine labour wages directly chargeable 160000
Works overhead expenditure 40000
Establishment and general expenses 19000
a. Show the works cost and total cost, the percentage that the works overhead cost bears to the manual and machine labour wages and the percentage that the establishment and general expenses bear to the works cost
b. What price should the company quote to manufacture a machine which, it is estimated, will require an expenditure of Rs 8000 on materials; and Rs. 6000 on wages , so that it will yield a profit of 25% on the total cost or 20% on selling price.
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