Multiple choice

The cost of manufacturing a product is divided among raw material, labour and overheads in the ratio 5 : 8 : 2. Find the total cost of raw material and overheads, if the cost of labour is Rs. 3248.

  1. Rs. 2842

  2. Rs. 1218

  3. Rs. 1800

  4. Rs. 3648

  5. None of these
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A Correct answer
Explanation

Ratio 5:8:2. Labour = 8 parts = 3248. 1 part = 406. Raw material + overheads = 5 + 2 = 7 parts. 7 * 406 = 2842.

AI explanation

The ratio of costs for raw material, labour and overheads is 5:8:2, meaning the labour cost represents 8 parts of the total. Since the cost of labour is Rs. 3248, one part equals 3248 divided by 8, which is Rs. 406. The combined cost of raw material and overheads represents 5 + 2 = 7 parts. Multiplying this by the value of one part gives 7 times 406, which totals Rs. 2842.

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