Tag: profit and loss with overhead expenses

Questions Related to profit and loss with overhead expenses

An example of a production overhead would be:

maths profit-loss overhead expenses introduction to total cost price of the article profit and loss with overhead expenses

  1. materials

  2. labour cost

  3. supervisory costs

  4. rent

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Correct Option: C
Explanation:

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.

Repairs, taxes, insurance, rent are all examples of

maths profit-loss overhead expenses introduction to total cost price of the article profit and loss with overhead expenses

  1. overhead expenses

  2. interest

  3. company profit

  4. cost price

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Correct Option: A
Explanation:
Overhead expenses are all costs on the income statement except for direct labour, direct materials, and direct expenses. 
Overhead expenses include accounting fees, advertising, insurance, interest, legal fees, labour burden, rent, repairs, supplies, taxes, telephone bills, travel expenditures, and utilities.

An ______ is the additional cost which is added to the cost price of an item.

maths profit-loss overhead expenses introduction to total cost price of the article profit and loss with overhead expenses

  1. interest

  2. cost

  3. overhead

  4. profit

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Correct Option: C
Explanation:

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

Overhead expenses are all costs on the income statement except for direct labour, direct materials, and direct expenses. 
Overhead expenses include accounting fees, advertising, insurance, interest, legal fees, labour burden, rent, repairs, supplies, taxes, telephone bills, travel expenditures, and utilities.

Absorption costing is closely related to which of the following cost elements?

maths profit-loss overhead expenses introduction to total cost price of the article profit and loss with overhead expenses

  1. Direct labour

  2. Overheads

  3. Total cost

  4. Machine

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Correct Option: B
Explanation:

Absorption costing is closely related to overhead expenses.

The additional cost spent on transportation, maintenance, labour, repair, etc., expenses incurred are called _______.

maths profit-loss overhead expenses introduction to total cost price of the article profit and loss with overhead expenses

  1. overhead expenses

  2. additional charge

  3. fixed amount

  4. cost price

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Correct Option: A
Explanation:

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

Overhead is those expenses required to run a business, but which cannot be directly attributed to any specific business activity, product, or service. 
Thus, overhead expenses do not directly lead to the generation of profits. Overhead is still necessary, since it provides critical support for the generation of profit-making activities.

Raman goes to the school book store with Rs.100.he purchases some books and comes back with Rs.68.70 with him.After sometime,he goes again to the store with Rs.250 and purchases some books and comes back with Rs.166.50.How much did he spend in all and how much money is left with him?

maths profit-loss overhead expenses introduction to total cost price of the article profit and loss with overhead expenses

  1. Rs.126.93, Rs.234.20

  2. Rs.234.20, Rs.118.96

  3. Rs.114.80, Rs.235.20

  4. Rs.115.80, Rs.126.930

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Correct Option: C
Explanation:

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

spend money will be = 100-68.70=Rs. $31.30$
now when he goes second time he has Rs. 250 and come back with Rs. 166.50 then,
spend money will be = 250-166.50= Rs. $83.50$
hence he has spend money will be= 31.30+83.50= Rs. $114.80$
 and he have left money will be= 68.70+166.50= Rs. $235.20$
Here answer is option $C$.

Brett currently spends $ $160$ each month on gas. His current car is able to travel $30$ miles per gallon of gas. He decides to switch his current car for a new car that is able to travel $40$ miles per gallon of gas. Assuming the price of gas stays the same, how much will he spend on gas each month with the new car?

maths profit-loss overhead expenses introduction to total cost price of the article profit and loss with overhead expenses

  1. $ $100$

  2. $ $120$

  3. $ $130$

  4. $ $140$

Show answer
Correct Option: B
Explanation:
Let $x$ be the price of gas per gallon
$\implies$ the fills $\dfrac{160}{x}$ gallons every month
$\implies$ He travels totally $30\times \dfrac{160}{x}$ every month $=\dfrac{4800}{x}$ miles
with his new car he needs to fill only $\dfrac{\left(\dfrac{480}{x}\right)}{40}=\dfrac{120}{x}$ gallons
Total Price $=\dfrac{120}{x}\times x$
                   $=\$120$

Mr. Sharma left one-third of his property to his son, one-fourth to his daughter and remainder to his wife. If his wife's share is $Rs. 18,000$, what was the worth of his total property?

maths profit-loss overhead expenses introduction to total cost price of the article profit and loss with overhead expenses

  1. Rs. $43,100$

  2. Rs. $43,200$

  3. Rs. $43,300$

  4. Rs. $43,400$

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Correct Option: B
Explanation:

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

Then his son's share Rs. $\dfrac{x}{3}$ and his daughter's share $\dfrac{x}{4}$ and his wife's share $x-\dfrac{x}{3}-\dfrac{x}{4}=\dfrac{5x}{12}$.
According to the problem,
$\dfrac{5x}{12}=18,000$
or, $x=43,200$.
So total property worth was of Rs. $43,200$.

if 5 men and 9 women can do a piece of work in 19 days then in how many days will 3 men and 6 women do the same work ?

maths profit-loss overhead expenses introduction to total cost price of the article profit and loss with overhead expenses

  1. 12 days

  2. 15 days

  3. 18 days

  4. 21 days

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Correct Option: B
Explanation:
It is given that 5 men or 9 women can do the job in 19 days.

So, 5 men=9 women

1 man = $\dfrac { 9 }{ 5 }$ women

3 men = 3 $(\dfrac { 9 }{ 5 } )$ women

So, work done = 3 men+6 women = 3 $(\dfrac { 9 }{ 5 } )+6$

$=\dfrac { 27 }{ 5 } +6$

$=\dfrac { 57 }{ 5 } $

Now,$ \dfrac { {M} _{1} {D} _{1} }{{W} _{1} }$= $ \dfrac { {M} _{2} {D} _{2} }{ {W} _{2} } ,$ 

let ${D} _{2} = x$

$\dfrac { 9*19 }{ {W} _{1} } = \dfrac { \dfrac { 57 }{ 5 } *x }{ {W} _{2} }$

$ \Longrightarrow 9*19=\dfrac { 57x }{ 5 }$

$ \Longrightarrow 3=\dfrac { x }{ 5 }$

$ \Longrightarrow x=15$ days

So, option (b) is correct.

The average of the price per kg. of rice at $10$ different places was $Rs.4.85$. After a week, the price per kg. was increased by $20$ paise at $3$ places and decreased by $10$ paise at one place. The new average of price per kg is :

maths profit-loss overhead expenses introduction to total cost price of the article profit and loss with overhead expenses

  1. $Rs. 4.88$

  2. $Rs. 4.86$

  3. $Rs. 4.90$

  4. $Rs. 5.35$

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Correct Option: A