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Factory overhead is 20% of prime cost Rs 1,30,000. What is the factory cost?

ARs 1,30,000
BRs 1,04,000
CRs 1,56,000
DRs 26,000
Answer & Solution
Correct answer: C. Rs 1,56,000
Overhead is 26,000, so factory cost is 1,30,000 + 26,000 = Rs 1,56,000.
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