Instructions

Answer the questions with the given information and the data.

The figures given below show the amount of work distribution (in operational hours) for a toy manufacturing company having manufacturing plants in Chennai and Kanpur. Each plant carries out six activities. Planned operational cost per hour of Chennai and Kanpur plants are ₹ 250 and %₹300 respectively. However, the actual operational cost per hour is ₹ 270 in Chennai and ₹ 315 in Kanpur.

Cost Difference (in %)=Absolute ((Actual Cost —- Planned Cost) / Planned Cost) x 100

Question 71

Whichof following activities has maximum cost difference in Kanpur Plant ?

Solution

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ACtivity 1 : 50/100 * 100 = 50%

Activity 3 : 100/150 *100= 66.6%

Activity 4 : 50/100 *100 = 50%

Activity 5 = 50/250 * 100 = 20%

Activity 3 is the correct answer.

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