With reference to the above question, what is the cost incurred in the new ‘coding’ stage? (Under the new technique, 4 people work in the sixth month and 5 in the eighth.)
Explanation:
As given in the previous question, it can be seen that the coding stage is now completed in 6th, 7th and 8th months.
Number of people employed in the 6th month is 4 and in the 8th month is 5. In the 7th month also there are 5 people employed (from previous data). Hence, if we were to combine these months, we find that the total cost incurred in the coding stage = (5 + 5 + 4) × 10000 = Rs.1,40,000.
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