The cost of an article in a capacity of 5,000 units is given under P. For a
Question:
The cost of an article in a capacity of 5,000 units is given under P. For a variation of 25%
in capacity above or below this level the individual expenses vary as indicated under Q below:
Particulars P Rs. Q Rs.
Material 25,000 100% Varying Labour 15,000 100% Varying Power 1,250 80% Varying Repair & Maintenance 2,000 75% Varying Stores 1,000 100% Varying Inspection 500 20% Varying Depreciation 10,000 100% Varying Admin. Overheads 5,000 25% Varying Selling Overheads 3,000 25% Varying Total 62,750 Cost per unit Rs. 12.55.
Find the unit cost of the product at production level of 4,000-5,000 units and 6,000 units.
[Ans.: (i) Level of 4000 units: Per unit cost Rs. 13.37; Total Amount Rs. 53,630; (ii) Level of 6,000 units: Per unit cost Rs. 12.55; Total Amount Rs. 72,020 (iii)Level of 5,000 unit per unit Rs. 12.55] Total amount 62,750.
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Zero To Mastery In Accounting Become A High Level Accounting Manager
ISBN: 9789392475177
1st Edition
Authors: HECTOR ROBINETT