What would be the value of total factory cost, if the cost of material consumed during the month is Rs. 6,000, labor cost incurred is Rs. 2,000

Option D is the right answer.

option D will be answer Rs.10,500

Factory Cost refers to total cost of making a product at factory that comprising of raw material, labor, and overhead costs.

Therefore it leads to option D10500

D)  Rs.10,500

D)10,500.....................................

Total Factory Cost = Direct Material + Direct Labor + Manufacturing Overhead

Total Factory Cost =6000+2000+2500 =10500

Option D