Introduction to total cost price of the article - class-VII

An example of a production overhead would be supervisory costs.
Materials and labour costs would be directly attributable to the product and would be classed as direct costs. Rent is a non production overhead but salaries of supervisors are related to production and are an overhead as they do not vary directly with output.

By definition, Overhead is the additional cost which is added to the cost price of an item. 

Absorption costing is closely related to overhead expenses.

The additional cost spent on transportation, maintenance, labour, repair, etc., expenses incurred are called $\text{Overhead expenses}$.

 In first time when Raman goes to store he has 100 Rs.  and come back with Rs. 68.70 then ,

Let the total property was of Rs. $x$.

The initial total price for 10 places is 10 * 4.85 = Rs. 48.50. The total increase is (3 * 0.20) - (1 * 0.10) = 0.60 - 0.10 = Rs. 0.50. The new total is 48.50 + 0.50 = Rs. 49.00, giving a new average of 49.00 / 10 = Rs. 4.90.

The effective selling price is the price at which an item is sold, whereas the cost price plus overhead expenses together make up the total cost or total effective cost, not the selling price.

Let the cost paid by $C$ be $x$ 

Let CP of car be Rs. x.
Cost on repair = $\displaystyle\frac{x}{10}$
Total cost = $x, + , \displaystyle\frac{x}{10}, = , \frac{11x}{10}$

We have, $\displaystyle\frac{11x}{10},\times, \frac{20}{100}, =, \frac{11x}{50},=, 11000$
x = 50000

Cost on repair = $\displaystyle\frac{x}{10},=, \frac{50000}{10}$
Rs. 5000

Let the cost of the T.V. be $Rs.\ x$ Then 
Material coast $\displaystyle =\frac{4x}{9}$ ,Labour coast $\displaystyle =\frac{3x}{9}$ ,Overhead costs $\displaystyle =\frac{2x}{9}$ New material cost $\displaystyle =\frac{110}{100}\times \frac{4x}{9}=\frac{44x}{90}$ 
New labour cost $\displaystyle =\frac{108}{100}\times \frac{3x}{9}=\frac{9x}{25}$
New overhead costs $\displaystyle =\frac{95}{100}\times \frac{2x}{9}=\frac{19x}{90}$
Increase in the cost of T.V.=$\displaystyle \left ( \frac{44x}{90}-\frac{4x}{9} \right )+\left ( \frac{9x}{25}-\frac{3x}{9} \right )+\left ( \frac{19x}{90}-\frac{2x}{9} \right )$
$\displaystyle =\frac{4x}{90}+\frac{2x}{75}-\dfrac{x}{90}=\dfrac{20x+12x-5x}{450}=\dfrac{27x}{450}$ $\displaystyle \therefore increase: in: cost=\dfrac{\dfrac{27x}{450}}{x}\times 100%=\dfrac{2700}{450}%=6%$

Price paid for buying a TV $=14,500$
Amount spent on transportation $= 500$
Total cost of the TV $=$ cost price $= 14,500 + 500 = 15,000$
Selling price $ = 12,000$
Loss $=$ C.P. $-$ S.P. $= 15,000 - 12,000=  3000$
Loss $%$ $= \dfrac{loss}{C.P.}\times 100$ $% =$ $\dfrac{3000}{15000}\times 100$ $%$ 
$= 20$ $%$

Price paid for buying a machine $= 7000$
Amount spent on electricity and labout $= 2000$
Total cost of the machine $=$ cost price $= 7000 + 2000 = 9000$
Selling price $= 5000$
Gain $=$ C.P. $-$ S.P. $= 9000 - 5000 = 4000$
Gain $% =$ $\dfrac{Gain}{C.P.}\times 100$ $% =$ $\dfrac{4000}{9000}\times 100$ $%$ 
$= 44.44%$

Price paid for buying a car =C.P= $Rs. 2300$
Amount spent on repair =$Rs. 1200$
Total cost of the cycle = cost price =$Rs. 2300 + Rs.1200 = Rs.3500$
selling price = S.P = $ Rs. 4500$

Gain percentage = $ \dfrac{S.P - C.P }{C.P} \times {100}$
=$\dfrac{1000}{3500} \times {100}$

=$ 28.57 $ %

Price paid for buying a cycle $=$ C.P. $=$ Rs. $500$
Amount spent on repair $=$ Rs. $100$
Total cost of the cycle $=$ cost price $=$ Rs. $500 +$ Rs. $100 = $ Rs. $600$
Selling price $=$ S.P $=$ Rs. $1200$
Gain percentage $=$ $ \dfrac{S.P - C.P }{C.P} \times {100}$
$=$$\dfrac{600}{600} \times {100}$
$=$$ 100$ $%$

Total amount spent by Ann = Cost price + overhead expenses
= $150000 + 4000 + 2000 = Rs. 156000$

The overhead charges become a part of the cost price.
So, Rs. 200 is a overhead expenses spent by Mike.

The amount spent on repairs, labor charges and transportation etc. expenses are called as overhead expenses.

Let the price of the shirt and trouser be Rs. $ x $.
As per the statement, " If the trouser had cost rupees twenty less and the shirt Rs. $15$ more, the price of the trouser would have only half that of the shirt " => $ x-20 = \frac {x+15}{2} $
$ => 2x-40 = x  +15 $
$ x = 55 $
Cost of the shirt $ = Rs  55 $.

By the early 20th century, America became the biggest supplier of wheat to Europe. This is because wheat production is highest in America at that time due to adoption of various new technology, climate change, etc. Hence, option (c) is correct as reason is incorrect explanation of assertion.