Courses for Kids
Free study material
Free LIVE classes
Questions & Answers

Dolly buys some laptop from a wholesaler for ₨\[10,000\] and spends ₨\[2,000\] on its transportation’s, ₨\[1,400\] for delivery charge and ₨\[1,300\] for load man etc. Find the overhead charges spent by Dolly.
A). ₨.\[3300\]
B). ₨.\[4700\]
C). ₨.\[2000\]
D). ₨.\[5000\]

Last updated date: 28th Mar 2023
Total views: 206.4k
Views today: 3.84k
206.4k+ views
Hint: Here, in the given question, we are asked to find the total overhead expenses when Dolly buys a laptop from a wholesaler and incur some other expenses. To reach the desired result, we will first understand the meaning of overhead expenses and then calculate the expenses incurred.

Complete step-by-step solution:
Overhead cost: It refers to the on-going business expenses not directly attributed to creating a product or service. In short, overhead cost is any expense incurred to support the business while not being directly related to a specific product or service.
Overhead charge is the sum total of on-going business expenses like rent, utilities, insurance, office supplies, travel, advertising expenses, accounting and legal expenses, salaries and wages, depreciation, Government fees and licenses, property taxes.
In this question overhead charge is transportation’s cost, delivery charge and man load.
Overhead charge= Transportation’s cost+ delivery charge+ load man and other charge.
Therefore, Overhead charge= \[2,000 + 1,400 + 1,300\]
Hence, B. ₨.\[4,700\] is correct option.

Note: It‌ ‌important‌ ‌to‌ ‌know‌ ‌that‌ ‌what‌ ‌type‌ ‌of‌ ‌charges‌ ‌include‌ ‌in‌ ‌overhead‌ ‌cost‌ ‌like‌ ‌rent,‌ ‌transportation‌ ‌expense‌ ‌and‌ ‌insurance‌ ‌etc.‌ ‌Overhead‌ ‌cost‌ ‌includes‌ ‌fixed‌ ‌monthly‌ ‌and‌ ‌annual‌ ‌expenses.‌ ‌In‌ ‌this‌ ‌question‌ ‌all‌ ‌the‌ ‌expenses‌ ‌are‌ ‌fixed‌ ‌like‌ ‌delivery‌ ‌and‌ ‌man‌ ‌load.‌ ‌To‌ ‌solve‌ ‌this‌ ‌type‌ ‌of‌ ‌question‌ ‌we‌ ‌should‌ ‌have‌ ‌some‌ ‌knowledge‌ ‌what‌ ‌type‌ ‌of‌ ‌expenses‌ ‌are‌ ‌counted‌ ‌under‌ ‌the‌ ‌head‌ ‌overhead‌ ‌cost.‌ ‌