CAF-5 · Chapter 18 · Question 17 of 20
(Simultaneous Equations & Factory Overheads) Dept P costs = Rs. 100,000 + 10% Q. Dept Q costs = Rs. 80,000 + 20% P. What is the total cost of Dept P?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Rs. 110,204
Explanation
P = 100k + 0.1Q; Q = 80k + 0.2P. P = 100k + 0.1(80k + 0.2P) = 108k + 0.02P. 0.98P = 108,000. P = 110,204.
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