Quiz

The following information is provided for Nibras Associates.

Total Machine Machine Assembly Canteen Maintenance

Shop A Shop B

1. Indirect
wages (DL) 78560
2. Consuamble
Material(DL) 16900
3. Rent and
rates (Area) 16700
4. Insurance
(Area) 2400
5. Power (Pow
Use) 8600
6. Heat and
lighting (Pow
Use) 3400
7. Depreciation
(Mac Use) 40200

One unit of Product Z uses 1800 grams of material y which costs $ 5/Kg, direct labour processes the
product in 40 minutes. Direct labour is paid at rate of $ 8/ Hour. Machine Shop A processes the unit in
75 mins, Machine Shop B uses 80 minutes and assembly line takes 25 minutes to assemble a product.
Markup on cost is 25%. Calculate the Selling price. Marks 10, Weightage = 1.5 mark