A company estimates its direct material requirements for the month of November 2014 to be Rs. 2,40,000 and the direct labour to be Rs. 1,500,00. It is the policy of the company to absorb overheads as under :Factory overheads 60% of direct wagesAdministrative overheads 20% of work costSelling and distribution overheads 25% of work costit is estimated that the selling and distribution overheads will increase by 15% in November the budgeted sales for the month of November 2014 is

A company estimates its direct material requirements for the month of

1.	A company estimates its direct material requirements for the month of November 2014 to be Rs. 2,40,000 and the direct labour to be Rs. 1,500,00. It is the policy of the company to absorb overheads as under :Factory overheads 60% of direct wagesAdministrative overheads 20% of work costSelling and distribution overheads 25% of work costit is estimated that the selling and distribution overheads will increase by 15% in November the budgeted sales for the month of November 2014 is
A.	rs. 9,21,600
B.	rs. 8,56,800
C.	rs. 6,87,150
D.	rs. 9,09,900
Answer» C. rs. 6,87,150

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A company estimates its direct material requirements for the month of November 2014 to be Rs. 2,40,000 and the direct labour to be Rs. 1,500,00. It is the policy of the company to absorb overheads as under :Factory overheads 60% of direct wagesAdministrative overheads 20% of work costSelling and distribution overheads 25% of work costit is estimated that the selling and distribution overheads will increase by 15% in November the budgeted sales for the month of November 2014 is
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