Q155
50 units are processed at a cost of Rs 80, normal loss is 10%, each unit carries a scrap value of 25 paise If output is 40 units, the value of abnormal loss will be _________.
A.
Rs. 1.25
B.
Rs. 8.00
C.
Rs. 8.75
AnswerD.
Rs. 8.88
Answer: Option C
Solution
Answer: Option C
Solution:
VALUE OF ABNORMAL LOSS = (Total cost - scrap value)/No of unit produced × Abnormal Issue=(80-(5×.25))/(50-5) × 5
=8.75