STI is majorly providing education loan in its loan department. For the month of August, salary paid to the education loan processors is 21,60,000.…
CA Intermediate · Cost and Management Accounting · MTP · January 2025
STI is majorly providing education loan in its loan department. For the month of August, salary paid to the education loan processors is 21,60,000. W.r.t. overhead cost, 30% is applicable to the processing of education loan out of the total overhead cost of loan department. The total overhead cost for the month of August is 16,40,000 which includes payment of 11,000 w.r.t. legal advice relating to one of the education loan processing. The education loan applications processed during this month are 500. You are required to COMPUTE the cost of processing per education loan application.
Suggested Answer and Working Notes:
Statement showing computation of the cost of processing an education loan application Particulars (₹) Salary paid to the education loan processors 21,60,000 Legal advice cost relating to education loan 11,000 Overhead cost [30% of (₹ 16,40,000 -11,000)] 4,88,700 Total processing cost per month 26,59,700 No. of applications processed per month 500 Total processing cost per education loan application 5,319.40
Topics: Service Costing
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