50 units are processed at a cost of Rs 80, normal loss is 10%, each unit carries a scrap value of 25 paise If output is 40 units, the value of abnormal loss will be _________.

Rs. 1.25

Rs. 8.00

Rs. 8.75

Rs. 8.88

✅ The correct answer is C.
VALUE OF ABNORMAL LOSS = (Total cost – scrap value)/No of unit produced × Abnormal Issue

=(80-(5×.25))/(50-5) × 5
=8.75

1155. 50 units are processed at a cost of Rs 80, normal loss is 10%, each unit carries a scrap value of 25 paise If output is 40 units, the value of abnormal loss will be _________.