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MGT402 ASsignment no 1 spring 11 April 2011 Solution
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Question:
Mr. Hassan deals in chair manufacturing. He got an order to manufacture 3000 chairs of a specific design for a school lab. It requires a cutter costing Rs.50, 000 to design the chair that is useless after completing this order. Wood used for this order is of Rs.200, 000, nails costing Rs.60, 000, furniture polish costing Rs.90, 000 and miscellaneous factory overhead charges Rs.25,000. Labor charges are Rs.50 per chair. He has appointed a supervisor at Rs.10,000 per month only for the completion of this order. (Time required to complete the order is 2 months).

Calculate the following for the whole order:
Prime cost
Total factory cost
Note:
Read the instructions mentioned in announcement carefully before attempting it.
Use the following format to answer:
Prime cost: _____________________
Total factory cost: ________________
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MGT402 ASsignment no 1 spring 11 April 2011 Solution - by Xpert - 04-11-2011, 09:06 PM

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