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=Percentage of Direct MaterialDirect Material Cost
Manufacturing Overhead Cost=Total Expenditure ×Percentage of Manufacturing Overheads
Solution:
Total Expenditure=0.2856,000=200,000(₹)
Manufacturing Overhead Cost=200,000×0.23=46,000 (₹)
The manufacturing overhead cost is ₹46,000.
Option (d) is right answer.