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    ​The following pie-chart shows the percentage distribution of the expenditure incurred by a company in manufacturing electric kettles. Answer the give
    Question

    ​The following pie-chart shows the percentage distribution of the expenditure incurred by a company in manufacturing electric kettles. Answer the given question based on the pie-chart.

    If for manufacturing a certain quantity of electric kettles, the company has to pay ₹56,000 towards direct material cost, then how much will be the manufacturing overhead cost?

    A.

    ₹35,000

    B.

    ₹45,000

    C.

    ​₹40,000

    D.

    ​₹46,000

    Correct option is D

    Given:

    Direct material cost = ₹56,000

    Direct material accounts for 28% of the total expenditure.

    Manufacturing overheads account for 23% of the total expenditure.

    Formula Used:

    Total Expenditure=Direct Material CostPercentage of Direct Material\text{Total Expenditure} = \frac{\text{Direct Material Cost}}{\text{Percentage of Direct Material}}

    Manufacturing Overhead Cost=Total Expenditure ×Percentage of Manufacturing Overheads​​

    Solution:

    Total Expenditure=56,0000.28=200,000()\text{Total Expenditure} = \frac{56,000}{0.28} = 200,000 (₹)

    Manufacturing Overhead Cost=200,000×0.23=46,000 (₹)\text{Manufacturing Overhead Cost} = 200,000 \times 0.23 = 46,000 \text{ (₹)}​​​​

    The manufacturing overhead cost is ₹46,000.

    Option (d) is right answer.

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