1. Arya Ltd. Is producing two models of a product: model 'A' and model 'B'.

The following cost

information is taken from their records for 6 months period ending 31/03/2020

Paticulars 1/10/2019 31/03/2020

Stock of Materials 29800 21970
Transactions during the month    
Purchase materials 124500  
Direct labor 81900  
Factory overheads 62100  
Office Overheads 43000
Selling overheads 35700  

The company wants to earn a profit of 20% on sales on both the

products. The number of units produced were model 'A' 2500 and
model 'B' 3000.
Other information
(a) Model 'B' consumes 20% more materials than model 'A'
(b) Time spent for model 'B' is 25% more than model 'A'
(c) Factory overheads are apportioned in the direct labour ratio over
the two models
(d) Administration overheads apportioned equally over the two models
(e) Selling overheads apportioned in 2:3 ratio