The following expenditures were incurred in Aditya Ltd. For the month of March 20X8: Amount (₹) (i) Paid for power & fuel 4,80,200 (ii) Wages…
CA Intermediate · Cost and Management Accounting · RTP · September 2026
The following expenditures were incurred in Aditya Ltd. For the month of March 20X8: Amount (₹) (i) Paid for power & fuel 4,80,200 (ii) Wages paid to factory workers 8,44,000 (iii) Bill paid to job workers 9,66,000 (iv) Royalty paid for production 8,400 (v) Fee paid to technician hired for the job 96,000 (vi) Administrative overheads 76,000 (vii) Commission paid to sales staffs 1,26,000 You are required to CALCULATE direct expenses for the month.
Suggested Answer and Working Notes:
Calculation of Direct Expenses Amount (₹) (i) Paid for power & fuel 4,80,200 (ii) Bill paid to job workers 9,66,000 (iii) Royalty paid for production 8,400 (iv) Fee paid to the technician 96,000 Total Direct expenses 15,50,600 Notes: Wages paid to factory workers is direct employee cost. Administrative overhead is indirect expense. Commission paid to sales staffs comes under selling expenses.
Topics: Employee Cost & Direct Expenses
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